(Grossman and Helpman 2004) have emphasized that the incompleteness of contracts in distant input-output linkages fosters agglomeration of downstream and upstream firms in the core region despite wage differential favoring to the periphery. Following this argument, this paper introduces uncertainty in input-output linkages in a NEG framework. We argue that uncertainty involves a coordination co...

The improvement of the labor market, management, expansion foreign direct investment, etc., all play a key role in economic development Western Balkans. main purpose this study is to analyze and compare trends employment, unemployment, gross domestic product (GDP), investment (FDI), market management effects on employment Balkans (Albania, Bosnia Herzegovina, Kosovo, North Macedonia, Montenegro...

*Ishikawa: Faculty of Economics, Hitotsubashi University, Kunitachi, Tokyo 186-8601, Japan. Fax: +81-(0)42-580-8882; E-mail: [email protected]. Sugita: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden. Tel: +46-8-736-9254; Email: [email protected]. Zhao: RIEB, Kobe University, Kobe 657-8501, Japan. Fax/Tel: +81-78-803-7006; E-mail: [email protected]. We than...

This paper focuses on the estimation of three distance-related effects on outward FDI. (i) Distance harms vertical multinationals, since they engage in trade. (ii) It makes non-trading multinationals better off than exporters. (iii) This positive effect on horizontal FDI is expected to rise with bilateral country size due to the home market effect. The use of panel data and related econometric ...

This paper considers the locational effects of geographically discriminatory trade policy. A preferential move towards a free trade area pulls industry into the integrating countries. Input-output links between imperfectly competitive firms amplify this effect and, when trade barriers fall below some critical level, may lead to agglomeration with some member countries gaining industry at the ex...

This review of recent contributions reveals common conclusions about the effects of integration on location. For high trade costs, the need to supply markets locally encourages firms to spread across different regions. Integration weakens the incentives for self-sufficiency and for intermediate values of trade costs pecuniary externalities induce firms and workers to cluster together, turning l...