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Dynamic analysis of location choice by multinational firms

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  • Morita, Tadashi

Abstract

This paper constructs a North–South endogenous growth model to investigate how the organizational forms of final goods firms evolve. Initially, the final goods firms in the North obtain intermediate goods from Northern firms and produce in the North. When trade costs are sufficiently low, as the economy develops, the final goods firms produce the final goods in the North and obtain the intermediate goods from Southern firms. As the economy develops further, they produce the final goods in the South and obtain intermediate goods from Southern firms.

Suggested Citation

  • Morita, Tadashi, 2012. "Dynamic analysis of location choice by multinational firms," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 1063-1076.
    • Handle: RePEc:eee:jmacro:v:34:y:2012:i:4:p:1063-1076
    DOI: 10.1016/j.jmacro.2012.07.004
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    References listed on IDEAS

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    Cited by:

    1. Yuki Saito, 2018. "On the trade, growth, and welfare effects of intellectual property rights protection," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 235-254, July.

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    More about this item

    Keywords

    Location choice; North–South; R&D; Economic growth;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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