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| Author: | Brülhart, M. Trionfetti, F. |
| Title: | Public expenditure, international specialisation and agglomeration |
| Journal: | European Economic Review
2004 : AUG, VOL. 48:4, p. 851-881 |
| Index terms: | Public expenditure Economic geography European Union Input-output analysis |
| Language: | eng |
| Abstract: | Public sector purchasers tend to favour domestic over foreign suppliers. This article examines the consequences of home-biased government procurement on international specialization. The results show firstly a pull effect, this is when a sector has a large home-biased procurement and the country will spezialise in that sector. Secondly, when home-biased procurement counters agglomeration forces in the sector, it can attenuate the overall degree on international specialization. This is called the spread effect. |
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