Register  |  Login  |  Inquiries  |  Sitemap |  
Advanced Search
Journal of Economic Integration 2000 June;15(2) :294-313.
DOI: https://doi.org/10.11130/jei.2000.15.2.294
Firm Location when Countries Differ in Infrastructures or Incomes

Ana M. Martín-ArroyuelosJosé M. Usategui 

Universidad del País Vasco (UPV-EHU)
Copyright ©2000 Journal of Economic Integration
ABSTRACT
This paper analyzes, in a linear market with two adjacent countries, how firm location and optimal plant size depend on differences in the quality of infrastructures and income levels between countries. The study considers also how a free trade agreement may change, in this context where geography is made explicit, the country where a firm locates and discusses when variations in infrastructures or incomes provide incentives for firm delocation. Among the results we obtain that an increase in income in the country with lower income may induce a firm to locate in the other country and that an increase in the difference in qualities of infrastructures between countries or a free trade agreement may move the optimal location of a firm from the country with worst infrastructure to the country with better infrastructure.
Keywords: firm location | infrastructure | income differences | linear market | economic integration
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
  Print
Share:      
METRICS
1
Crossref
0
Scopus
3,120
View
26
Download
Firm Location, Trade and Economic Integration  2002 April;17(4)
Editorial Office
Center for Economic Integration, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-6935-2492   E-mail : editorial.office@e-jei.org
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration.      Developed in M2PI