On the Impact of Competition on Trade and Firm Location
On the Impact of Competition on Trade and Firm Location
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DOI:
10.1111/jors.12139
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发表时间:
2014-11
期刊:
影响因子:
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通讯作者:
Toshihiro Okubo;P. Picard;Jacques-François Thisse
中科院分区:
文献类型:
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作者:
Toshihiro Okubo;P. Picard;Jacques-François Thisse
We study how the level of trade costs and the intensity of competition interact to explain the nature and intensity of trade within a given industry and the location of firms across countries. As trade costs decrease from very high to very low values, the global economy moves from autarky to two-way trade, through one-way trade from the larger to the smaller region. By exploring the intensive and extensive margins of exports, we investigate how the intensity of trade reacts to the degree of competitiveness. Furthermore, when firms are free to change location, they flow from the small to the large country, and the larger country is always a net exported on the manufactured good. Firms located in the big country have a bigger size than those located in the small one. Under one-way trade, the relocation of firms changes their attitude toward export.