Distribution Costs, International Trade and Industrial Location
AbstractThe purpose of this study is to illustrate, with a simple two-country, two-good, two-factor model, how a technological/regulational improvement in one country's distribution sector can affect firms' location decisions and the nature of the trading equilibrium. It is shown that, through improvements in distribution sector, one country might divert high-tech industries to another country. This effect reduces the incentive to improve distribution sector lower.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 9160.
Date of creation: 2008
Date of revision:
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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