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Author:Ekholm, K.
Forslid, R.
Title:Trade and location with horizontal and vertical multi-region firms
Journal:Scandinavian Journal of Economics
2001 : VOL. 103:1, p. 101-118
Index terms:Economic geography
Trade
Econometric models
Multinational companies
Corporate structure
Freeterms:Agglomeration
Language:eng
Abstract:The authors analyse the effect on agglomeration tendencies of allowing multi-region firms in a standard trade and location model, the core-periphery model developed by Kurgman. The introduction of horizontal multi-region firms mitigates the agglomeration effects found in the CP model by reducing the range of trade costs for which the core-periphery equilibrium occurs. The equilibrium is always asymmetric in spite of theunderlying symmetry of the model.
SCIMA record nr: 225210
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