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WHICH FIRMS ARE LEFT IN THE PERIPHERY? SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE ECONOMIES IN TRANSPORTATION

WHICH FIRMS ARE LEFT IN THE PERIPHERY? SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE... ABSTRACT 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Regional Science Wiley

WHICH FIRMS ARE LEFT IN THE PERIPHERY? SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE ECONOMIES IN TRANSPORTATION

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References (32)

Publisher
Wiley
Copyright
© 2015 Wiley Periodicals, Inc.
ISSN
0022-4146
eISSN
1467-9787
DOI
10.1111/jors.12115
Publisher site
See Article on Publisher Site

Abstract

ABSTRACT 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.

Journal

Journal of Regional ScienceWiley

Published: Jan 1, 2015

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