The District Goes Global: Export vs. FDI

Giorgio Basevi () and Gianmarco Ottaviano

No 132, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: This paper depicts an industrial district as a center of innovation in which local technological externalities sustain the endogenous invention of new goods by profit seeking firms. After invention firms dace a crucial choice between reaching distant markets by export or plant delocation. The paper shows how firms, in the attempt to circumvent the obstacles to good s and plant mobility, overlook the impact of their decisions on innovation activities inside the district thus generating a suboptimal mix of export and delocation.

Keywords: Industrial district; Regional Development; Delocation (search for similar items in EconPapers)
JEL-codes: F43 O30 R12 (search for similar items in EconPapers)
Date: 1999-08-01
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Working Paper: The District Goes Global: Export vs FDI (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:132

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