IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v10y2010i1p61-78.html
   My bibliography  Save this article

Industry relocation, linkages and spillovers across the Baltic Sea: extending the footloose capital model

Author

Listed:
  • Ole Christiansen

    () (Carl von Ossietzky Universität Oldenburg)

  • Dirk H. Ehnts

    () (Carl von Ossietzky Universität Oldenburg)

  • Hans-Michael Trautwein

    () (Carl von Ossietzky Universität Oldenburg)

Abstract

TStudying the recent relocation of manufacturing industries from the Nordic countries to the Baltic countries, this paper provides an empirical application of the footloose capital model, a framework for spatial analysis. The model is extended to include input-output linkages and FDI spillovers. It is calibrated and applied, industry by industry, to a 3x3 matrix of Baltic countries and Nordic countries and to the pairing of these blocs. Simulation results are compared with ‘real world’ data and discussed in regard to testability restrictions of the footloose capital model. Incorporation of vertical linkages and spillovers can improve the goodness of fit, but while the predicted direction of industry relocation is often correct, predicted levels are not.

Suggested Citation

  • Ole Christiansen & Dirk H. Ehnts & Hans-Michael Trautwein, 2010. "Industry relocation, linkages and spillovers across the Baltic Sea: extending the footloose capital model," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 10(1), pages 61-78, June.
  • Handle: RePEc:bic:journl:v:10:y:2010:i:1:p:61-78
    as

    Download full text from publisher

    File URL: http://biceps.org/assets/docs/bje/Industry_relocation_linkages.pdf
    Download Restriction: no

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Cosmos and the City
      by Dirk in econoblog101 on 2011-05-29 18:50:48

    More about this item

    Keywords

    new economic geography; footloose capital model; linkages; spillovers;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:10:y:2010:i:1:p:61-78. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lelde Jakobsone). General contact details of provider: http://edirc.repec.org/data/biceplv.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.