On the development strategy of countries of intermediate size - An analysis of heterogeneous firms in a multi-region framework
Rikard Forslid () and
Toshihiro Okubo ()
No 2011-029, Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program
This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in particular for the country of intermediate size. Unless the intermediate country is very small, in a relative sense, it will gain industry when relocation costs are reduced, but lose industry when trade costs are reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the opposite.
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: On the development strategy of countries of intermediate size—An analysis of heterogeneous firms in a multi-region framework (2012)
Working Paper: On the development strategy of countries of intermediate size - An analysis of heterogenous firms in a multiregion framework (2011)
Working Paper: On the Development Strategy of Countries of Intermediate size - An Analysis of Heterogenous Fims in a Multiregion Framework (2010)
Working Paper: On the development strategy of countries of intermediate size -An analysis of heterogenous firms in a multiregion framework (2010)
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:kei:dpaper:2011-029
Access Statistics for this paper
More papers in Keio/Kyoto Joint Global COE Discussion Paper Series from Keio/Kyoto Joint Global COE Program Contact information at EDIRC.
Bibliographic data for series maintained by Global COE Program Office (). This e-mail address is bad, please contact .