Interregional Trade, Industrial Location and Import Infrastructure
The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region fs import infrastructure can affect firms f location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.
|Date of creation:||Jul 2009|
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