search query: @journal_id 1342 / total: 707
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| Author: | Egger, H. Falkinger, J. |
| Title: | The role of public infrastructure and subsidies for firm location and international outsourcing |
| Journal: | European Economic Review
2006 : NOV, VOL. 50:8, p. 1993-2015 |
| Index terms: | international outsourcing companies location of industry welfare models |
| Language: | eng |
| Abstract: | In this paper, a model is presented in which final goods producers outsource intermediate input production. The model is used to examine competitive location policy in a 2-country free trade area (FTA). It is shown that national public infrastructure investment has a positive effect on both the number of intermediate input producers and the return to the immobile factor in the home country. Through a welfare analysis characterized are national infrastructure policies aiming to maximize national income and compared the non-cooperative FTA-equilibrium with optimal policies from an integrated point of view. It is shown whether or not there is a need for policy coordination. |
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