Internalistation, Industrial Policy and Clusters

Rikard Forslid and Karen Helene Midelfart Knarvik ()
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Karen Helene Midelfart Knarvik: Institute for Research in Economics and Business Administration, Postal: SNF, Breiviksveien 40, 5045 Bergen, NORWAY, http://www.snf.no
Authors registered in the RePEc Author Service: Karen Helene Ulltveit-Moe

No 2001:14, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically linked upstream and downstream firms. Optimal policy towards upstream and downstream industries differ radically in this setting. However the restriction that the agglomeration should be sustained may restrict the otherwise welfare maximising policy.

Keywords: agglomeration; clusters; taxes (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 R12 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2001-12-17
New Economics Papers: this item is included in nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2001_0014

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