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| Author: | Amiti, M. |
| Title: | Location of vertically linked industries: agglomeration versus comparative advantage |
| Journal: | European Economic Review
2005 : MAY, VOL. 49:4, p. 809-832 |
| Index terms: | Trade Liberalization Vertical integration Economic geography Models |
| Freeterms: | Vertical links |
| Language: | eng |
| Abstract: | This article examines the impact of trade liberalisations on the location of manufacturing firms. The new economic geography literature is extended using a model with vertically linked industries embedded in a Heskscher-Ohlin model. The results indicate that lower trade costs may lead to an agglomeration of all upstream and downstream firms in one country despite of differences in factor intensities. |
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