Arbeitspapier

Import competition and industry location in a small-country model of productivity growth

We study the effects of import competition on industry locations patterns in a small open economy with two regions. Domestic productivity growth converges to the international rate through firm-level investment in process innovation. With firms locating production and innovation in their lowest cost locations, the concentration of industry in the larger region is linked with firm-level innovation through an import competition effect that is increasing in the market share of imported goods and the productivity differential of domestic firms with the rest of the world. We show that increased import competition, through either a larger number of imported goods or a faster international rate of productivity growth, leads to greater industry concentration by reducing domestic market entry and decreasing the relative productivity of domestic firms. We also consider the implications of improved regional and international economic integration.

Sprache
Englisch

Erschienen in
Series: ISER Discussion Paper ; No. 1066

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Economic Growth of Open Economies
Economic Growth and Aggregate Productivity: General
Size and Spatial Distributions of Regional Economic Activity
Thema
Import competition
Industry concentration
Endogenous productivity growth

Ereignis
Geistige Schöpfung
(wer)
Davis, Colin R.
Hashimoto, Ken-ichi
Ereignis
Veröffentlichung
(wer)
Osaka University, Institute of Social and Economic Research (ISER)
(wo)
Osaka
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Davis, Colin R.
  • Hashimoto, Ken-ichi
  • Osaka University, Institute of Social and Economic Research (ISER)

Entstanden

  • 2019

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