Industry Reallocations in a Globalizing Economy

Kristian Behrens (), Giordano Mion () and Gianmarco I.P. Ottaviano ()

No 6049, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the numerical implementation of a theoretical framework calibrated on European data, which encompasses aspects of economic geography, firm heterogeneity, and firms' organizational choices. Our final purpose is to provide a comprehensive background for empirical investigations and to stimulate further theoretical research.

Keywords: economic geography; firm heterogeneity; international integration; multinationals; resource reallocation (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2007-01
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Working Paper: Industry reallocations in a globalizing economy (2007)
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