Uncertain Trade Costs and Industrial Localisation: Concentration versus Diversification

K-H Midelfart Knarvik
Authors registered in the RePEc Author Service: Karen Helene Ulltveit-Moe

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: The paper studies how uncertainty about future trade arrangements affecting firms' competitiveness and market access, may influence firms' investment behaviour and choice of location. Our analysis is based on a model of imperfect competition, and we show that risk aversion is not a necessary condition for firms to respond negatively to trade cost uncertainty.

Keywords: RISK; COMPETITION; INFORMATION; UNCERTAINTY; TRADE (search for similar items in EconPapers)
JEL-codes: D8 F1 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:25/96

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