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The District Goes Global: Export vs. FDI

Author

Listed:
  • Giorgio Basevi

    (University of Bologna)

  • Gianmarco I.P.Ottaviano

    (University of Bologna; CEPR)

Abstract

This paper depicts an industrial district as a center of innovation in which local technological externalities sustain the endogenous invention of new goods by profit seeking firms. After invention firms dace a crucial choice between reaching distant markets by export or plant delocation. The paper shows how firms, in the attempt to circumvent the obstacles to good s and plant mobility, overlook the impact of their decisions on innovation activities inside the district thus generating a suboptimal mix of export and delocation.

Suggested Citation

  • Giorgio Basevi & Gianmarco I.P.Ottaviano, 1999. "The District Goes Global: Export vs. FDI," Development Working Papers 132, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:132
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    File URL: http://www.dagliano.unimi.it/media/WP1999_132.pdf
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    Keywords

    Industrial district; Regional Development; Delocation;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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