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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. |
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