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The District Goes Global: Export vs. FDI

Listed author(s):
  • Giorgio Basevi

    (University of Bologna)

  • Gianmarco I.P.Ottaviano

    (University of Bologna; CEPR)

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.

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Paper provided by Centro Studi Luca d'Agliano, University of Milano in its series Development Working Papers with number 132.

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Date of creation: 01 Aug 1999
Handle: RePEc:csl:devewp:132
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