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Migration of Electronics Production. Optimisation of Technology or Labour Costs?


  • R¸nno Lumiste

    () (School of Economics and Business Administration, Tallinn University of Technology)


Electronics industry is one of the most dynamic industrial activities in the world. Dynamism is expressed by new products and, for our concern, especially by constant relocation and transfer of production. New factories and research laboratories are opened and old ones closed every week. Foreign investments and transfer of production are not new events. However, their scope and volume are unprecedented in historical terms. In this paper we analyse the location patterns. We analyse the factory relocation both on local (Estonian) and global level. Based on Johann von Th¸nen model we construct also a model for explaining the location. We try to base on technical and technological argumentation rather than on social factors.

Suggested Citation

  • R¸nno Lumiste, 2006. "Migration of Electronics Production. Optimisation of Technology or Labour Costs?," Working Papers 148, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
  • Handle: RePEc:ttu:wpaper:148

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    References listed on IDEAS

    1. Howard Pack, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter.
    2. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    3. José Mata & Pedro Portugal, 1999. "Closure and Divestiture By Foreign Entrants: The Impact of Entry and Post-Entry Strategies," Working Papers w199906, Banco de Portugal, Economics and Research Department.
    4. Venables, Anthony J. & Limao, Nuno, 2002. "Geographical disadvantage: a Heckscher-Ohlin-von Thunen model of international specialisation," Journal of International Economics, Elsevier, vol. 58(2), pages 239-263, December.
    5. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
    6. Slavo Radosevic, 2002. "La industria electronica en los paises de Europe central y oriental: una nueva localizacion de la production global (The electronics industry in Central and Eastern Europe: a new global) production lo," UCL SSEES Economics and Business working paper series 21, UCL School of Slavonic and East European Studies (SSEES).
    7. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
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    More about this item


    electronics industry; delocalization; relocation; deindustrialization; public governance.;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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