Chen, Ching-mu; Zeng, Dao-Zhi - In: International Journal of Economic Theory 10 (2014) 2, pp. 179-202
type="main" xml:lang="en" <p>This paper incorporates heterogeneous demand elasticities and the quality/skill complementarity of production in a footloose capital model in order to explain the spatial selection of firms with differentiated quality. We find that when trade becomes freer, high-quality...</p>