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On the concept of locational competition

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  • Siebert, Horst

Abstract

Locational competition means that the immobile factors of production in a country compete for internationally mobile capital and technology. Locational competition influences the restraint set of national players and redefines their opportunity costs. Thus, the bargaining position of the trade unions is affected. Also the manoeuvring space of government in terms of taxation and institutional arrangements is reduced. Governments are more or less forced into an economic policy (and institutional) benchmarking. A high degree of openness means that a country is exposed more to external changes. We therefore can expect that smaller countries will be the innovators in world wide institutional competition.

Suggested Citation

  • Siebert, Horst, 1996. "On the concept of locational competition," Kiel Working Papers 731, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:731
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    Citations

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    Cited by:

    1. Helmut Wagner & Wolfram Berger, 2004. "Globalization, Financial Volatility and Monetary Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(2), pages 163-184, June.
    2. Siebert, Horst, 1996. "Die Weltwirtschaft im Umbruch: müssen die Realeinkommen der Arbeitnehmer sinken?," Kiel Working Papers 744, Kiel Institute for the World Economy (IfW Kiel).
    3. Friedrich Heinemann, 2000. "Does globalization restrict budgetary autonomy?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 35(6), pages 288-298, November.
    4. Heinemann, Friedrich, 1998. "EMU and fiscal discipline: the end of the depreciation threat," ZEW Discussion Papers 98-30, ZEW - Leibniz Centre for European Economic Research.
    5. Berthold, Norbert & Fricke, Holger & Kullas, Matthias, 2005. "Standortwettbewerb der Bundesländer," Discussion Paper Series 80, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    6. Siebert, Horst, 1997. "Disziplinierung der nationalen Wirtschaftspolitik: durch die internationale Kapitalmobilität," Kiel Working Papers 832, Kiel Institute for the World Economy (IfW Kiel).
    7. Mr. Helmut Wagner, 2001. "Implications of Globalization for Monetary Policy," IMF Working Papers 2001/184, International Monetary Fund.
    8. Berthold, Norbert & Fricke, Holger, 2009. "Die Bundesländer im Standortwettbewerb," Discussion Paper Series 106, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.

    More about this item

    JEL classification:

    • F00 - International Economics - - General - - - General

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