Public Expenditure and International Specialisation

Marius Brülhart and Federico Trionfetti

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: We study the impact of home-biased public expenditure on international specialisation in general equilibrium models with increasing returns and monopolistic competition. It is found that home-biased procurement attracts increasing-returns industries to the home country (the "pull" effect) and attenuates the overall degree of industrial specialisation (the "spread" effect). Empirical evidence based on input-output data for the European Union confirms the existence of these links between public expenditure and the location of manufacturing activities.

Keywords: public expenditure; international specialisation; economic geography; European Union; input-output analysis (search for similar items in EconPapers)
JEL-codes: F1 H5 R15 R3 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2000-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in European Economic Review, vol. 48 (4), August 2004, pp. 851-881
Forthcoming in European Economic Review, 2004

Downloads: (external link)
http://www.hec.unil.ch/deep/textes/00.23.pdf (application/pdf)

Related works:
Working Paper: Public Expenditure and International Specialisation (2001)
Working Paper: Public expenditure and international specialisation (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:00.23

Access Statistics for this paper

More papers in Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie Université de Lausanne, Faculté des HEC, Département d’économie, Internef, CH-1015 Lausanne. Contact information at EDIRC.
Bibliographic data for series maintained by Christina Seld ().