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Migration of Electronics Production. Optimisation of Technology or Labour Costs?

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  • Rünno Lumiste

    ()
    (School of Economics and Business Administration, Tallinn University of Technology)

Abstract

Electronics industry is one of the most dynamic industrial activities in the world. Dynamism is expressed by new products and, for our concern, especially by constant relocation and transfer of production. New factories and research laboratories are opened and old ones closed every week. Foreign investments and transfer of production are not new events. However, their scope and volume are unprecedented in historical terms. In this paper we analyse the location patterns. We analyse the factory relocation both on local (Estonian) and global level. Based on Johann von Thünen model we construct also a model for explaining the location. We try to base on technical and technological argumentation rather than on social factors.

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Bibliographic Info

Paper provided by Tallinn School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 148.

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Length: 15
Date of creation: 2006
Date of revision:
Publication status: Published in Working Papers in Economics, School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Volume 20, Pages 63-77
Handle: RePEc:ttu:wpaper:148

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Keywords: electronics industry; delocalization; relocation; deindustrialization; public governance.;

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  1. Venables, Anthony J. & Limao, Nuno, 1999. "Geographical disadvantage - a Heckscher-Ohlin-von Thunen model of international specialization," Policy Research Working Paper Series 2256, The World Bank.
  2. Slavo Radosevic, 2002. "The electronics industry in central and eastern Europe: an emerging production location in the alignment of networks perspective’," Working Papers 21, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  3. José Mata & Pedro Portugal, 1999. "Closure and Divestiture By Foreign Entrants: The Impact of Entry and Post-Entry Strategies," Working Papers w199906, Banco de Portugal, Economics and Research Department.
  4. Howard Pack, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter.
  5. Petit, Pascal, 1993. "Employment and technical change," CEPREMAP Working Papers (Couverture Orange) 9330, CEPREMAP.
  6. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
  7. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, 03.
  8. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
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