This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically linked upstream and downstram firms. We show that optimal policy towards upstream in-dustries typically di¤er from the optimal policy towards downstream industries.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
30/2001.
Length: 28 pages Date of creation: 2001 Date of revision: Handle: RePEc:fth:norgee:30/2001
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