The spatial selection of heterogeneous firms

• 成果类型: Article
• 署名作者: Okubo, Toshihiro; Picard, Pierre M.; Thisse, Jacques-Francois
• 署名单位: Universite Catholique Louvain; Kobe University; University of Luxembourg; Paris School of Economics
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2010.07.003
• 发表日期: 2010
• 页码: 230-237
• 关键词: Firm heterogeneity; Spatial selection; trade liberalization; Economic geography

摘要

We show that heterogeneous firms choose different locations in response to market integration Specifically decreasing trade costs lead to the gradual agglomeration of efficient firms in the larger country where they have access to a bigger pool of consumers In contrast high-cost firms seek protection against competition from efficient firms by locating in the smaller country However when the spatial separation of markets ceases to be a sufficient protection against foreign competition high-cost firms choose to set up in the larger market Hence the relationship between economic integration and international productivity gap first increases and then decreases with market integration (C) 2010 Elsevier B V All rights reserved