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Blanchard, Pierre; Gaigne, Carl; Mathieu, Claude. |
We study the impact of trade liberalization on the international strategy of firms (to export and/or invest abroad as well as the number of varieties to be produced) when product differentiation is endogenous. By considering product differentiation as a strategic variable, our analysis sheds new light on the impact of trade barriers on the decision to produce abroad and on the choice of product range, in accordance with recent empirical evidence. We show, even though technology exhibits the same productivity for each variety, firms drop some of varieties with trade integration. In addition, our results reveal that, contrary to the standard theoretical literature, the relationship between the decision to export and trade costs is non-linear. When trade... |
Tipo: Working Paper |
Palavras-chave: Foreign direct investment; Exports; Multi-product competition; Endogenuos differentiation product; Trade integration; International Relations/Trade; F12; F23; L11; L25. |
Ano: 2012 |
URL: http://purl.umn.edu/121117 |
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Gaigne, Carl; Riou, Stephane; Thisse, Jacques-Francois. |
There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly as the average commuting length is reduced. However, when we account for the possible relocation of activities within and between cities in response to a higher population density, the latter may cease to hold. Because changes in population density affect land rents and wages, firms and workers re-optimize and choose new locations. We show that this may reshape the urban system in a way that... |
Tipo: Working Paper |
Palavras-chave: Greenhouse gas; Commuting costs; Transport costs; Cities; Environmental Economics and Policy; D61; F12; Q54; Q58; R12. |
Ano: 2012 |
URL: http://purl.umn.edu/121692 |
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