Market Access and Home Market Effect
Karavidas Dionysios ()
Additional contact information
Karavidas Dionysios: Department of Economics, Kemmy Business School, University of Limerick, Limerick, Ireland
Open Economics, 2020, vol. 3, issue 1, 42-49
Based on the standard Footloose Capital model developed by Martin and Rogers (1995), I consider an integrated model that consists of a system of two regions and a third external region, in order to study the impact of improved market access on the Home Market Effect within the system of the two regions. The concept of the Home Market Effect is well known in the literature, but once we extend the number of regions, many are unknown. The main finding of the model suggests that improved market access with respect to an external market enhances the Home Market Effect within the system of the two regions. Interestingly, I show that this finding comes from the fact that improved market access increases the Market Access Effect, while it has no impact on the Market Crowding Effect.
Keywords: Market Access; Home Market Effect; Footloose Capital; Internal Geography (search for similar items in EconPapers)
JEL-codes: F2 F22 F6 R12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vrs:openec:v:3:y:2020:i:1:p:42-49:n:3
Access Statistics for this article
Open Economics is currently edited by Friedrich Schneider
More articles in Open Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().