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Internalistation, Industrial Policy and Clusters

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Author Info
Forslid, Rikard () (Dept. of Economics, Stockholm University)
Midelfart Knarvik, Karen Helene () (Institute for Research in Economics and Business Administration)
Abstract

This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically linked upstream and downstream firms. Optimal policy towards upstream and downstream industries differ radically in this setting. However the restriction that the agglomeration should be sustained may restrict the otherwise welfare maximising policy.

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Publisher Info
Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2001:14.

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Length: 27 pages
Date of creation: 17 Dec 2001
Date of revision:
Handle: RePEc:hhs:sunrpe:2001_0014

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Web page: http://www.ne.su.se/
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Related research
Keywords: agglomeration; clusters; taxes;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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This page was last updated on 2009-12-16.


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