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WHICH FIRMS ARE LEFT IN THE PERIPHERY?: SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE ECONOMIES IN TRANSPORTATION
Stockholm University, Faculty of Social Sciences, Department of Economics.
2015 (English)In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 55, no 1, 51-65 p.Article in journal (Refereed) Published
Abstract [en]

This paper introduces scale economies in transportation in a trade and geography model with heterogeneous firms. This relatively small change to the standard model produces a new pattern of spatial sorting among firms. In contrast to the existing literature, our model produces the result that firms of intermediate productivity relocate to the large core region, whereas high-and low-productivity firms remain in the periphery. Trade liberalization leads to a gradual relocation to the core with the most productive firms remaining in the periphery.

Place, publisher, year, edition, pages
2015. Vol. 55, no 1, 51-65 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-113958DOI: 10.1111/jors.12115ISI: 000347821600004OAI: oai:DiVA.org:su-113958DiVA: diva2:789882
Note

AuthorCount:2;

Available from: 2015-02-20 Created: 2015-02-16 Last updated: 2017-12-04Bibliographically approved

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Forslid, Rikard
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