Which Firms are Left in the Periphery? - Spatial Sorting of Heterogeneous Firms with Scale Economies in Transportation

Rikard Forslid and Toshihiro Okubo

No 2013:9, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: This paper introduces scale economies or density economies in transportation in a trade and geography model with heterogeneous firms. This relatively small change to the standard model produces a new pattern of spatial sorting among …firms. Contrary to the existing literature, our model produces the result that firms of intermediate productivity relocate to the large core region, whereas high and low productivity firms remain in the periphery. Trade liberalisation leads to a gradual relocation to the core, with the most productive firms remaining in the periphery.

Keywords: heterogeneous …firms; transportation costs; scale economies (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2013-04-17
New Economics Papers: this item is included in nep-eff, nep-geo, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: WHICH FIRMS ARE LEFT IN THE PERIPHERY? SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE ECONOMIES IN TRANSPORTATION (2015)
Working Paper: Which Firms are Left in the Periphery? - Spatial Sorting of Heterogeneous Firms with Scale Economies in Transportation (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2013_0009

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