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Industry Reallocations in a Globalizing Economy

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  • Ottaviano, Gianmarco
  • Mion, Giordano
  • Behrens, Kristian

Abstract

We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the numerical implementation of a theoretical framework calibrated on European data, which encompasses aspects of economic geography, firm heterogeneity, and firms' organizational choices. Our final purpose is to provide a comprehensive background for empirical investigations and to stimulate further theoretical research.

Suggested Citation

  • Ottaviano, Gianmarco & Mion, Giordano & Behrens, Kristian, 2007. "Industry Reallocations in a Globalizing Economy," CEPR Discussion Papers 6049, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:6049
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    Cited by:

    1. García-Vega, María & Guariglia, Alessandra & Spaliara, Marina-Eliza, 2012. "Volatility, financial constraints, and trade," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 57-76.
    2. Katrin Peters & Monika Schnitzer, 2015. "Trade liberalization and credit constraints: Why opening up may fail to promote convergence," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 1099-1119, August.
    3. Catherine BAUMONT & Rachel GUILLAIN, 2013. "Interactions, Spillovers De Connaissance Et Croissance Des Villes Européennes - Quel Est Le Rôle De La Géographie, Du Climat Institutionnel Et Des Réseaux Des Firmes Multinationales ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 161-207.
    4. Laura Abramovsky & Rachel Griffith & Gareth Macartney & Helen Miller, 2008. "The location of innovative activity in Europe," IFS Working Papers W08/10, Institute for Fiscal Studies.
    5. Michael Pflüger & Stephan Russek, 2014. "Trade and Industrial Policies with Heterogeneous Firms: The Role of Country Asymmetries," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 170-188, February.

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    More about this item

    Keywords

    Economic geography; Firm heterogeneity; International integration; Multinationals; Resource reallocation;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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