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Strategic investment and industry location in a footloose capital model of economic geography

Kenji Fujiwara ()
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Kenji Fujiwara: School of Economics, Kwansei Gakuin University

No 224, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper examines how strategic investment of capitalists affects the industry location in a footloose capital model. We show that the home market effect is robust but is moderated when capitalists strategically invest. That is, the industry location is closer to dispersion when capitalists are strategic than when they are atomic.

Keywords: Footloose capital model; Strategic investment; Industry location (search for similar items in EconPapers)
JEL-codes: F12 R12 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2021-02
New Economics Papers: this item is included in nep-geo and nep-ure
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http://192.218.163.163/RePEc/pdf/kgdp224.pdf First version, 2021 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:224

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