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Author House, Queen Elizabeth ♦ Ottaviano, Gianmarco I. P. ♦ Ottavianoy, Gianmarco I. P.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Footloose Capital ♦ Market Access ♦ Regional State Aid ♦ Regional Policy ♦ Trade Cost ♦ Simple Model ♦ Trade Model ♦ Er Market Access Advantage ♦ Market Power ♦ Imperfect Competition ♦ Competitive Sector ♦ Theoretical Ground ♦ Global Welfare Implication ♦ Overall Tendency ♦ Home Market Ect
Abstract The global welfare implications of home market e¤ects in trade models with imperfect competition are little understood. This paper proposes a simple model in which such implications can be easily ana-lyzed. It shows an overall tendency of imperfectly competitive sectors to ine¢ciently cluster in locations that o¤er market access advantages. The more so the stronger the market power of …rms as well as the in-tensity of increasing returns to scale and the lower the trade costs. As such features are likely to di¤er widely across sectors, those results provide theoretical ground to the promotion of regional policies that are also sector-speci…c and not only region-speci…c as currently in the EU.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Date 2001-01-01