The paper deals with a location game involving two symmetric firms. The players choose strategies in a spatial setting made up by two asymmetric countries,where the smallest country has a labour cost advantage. Determination of equilibrium location patterns enables to assess under what...

Main trends of per capita income convergence in Portugal and the European Union are surveyed. An explanation is given to the fact that in the last two decades countries have converged, while no visible convergence has taken place among the regions belonging to a given country. A theoretical...

In this paper, we develop a Listian model of economic development. The economy consists of a primary sector and a potential industrial sector that can arise via industrialization. Industrialization however depends on if the primary sector specializes on the primary product, which can lead to a...

type="main" <title type="main">ABSTRACT</title> <p>This paper studies the endogenous choice of transport technology, “traditional” versus “modern,” by a shipper. Although the “modern” technology is characterized by higher fixed costs and a higher speed of transport, it is chosen for intermediate distances, rather...</p>

This timely book investigates the challenges that emerge for local economies when faced with the new globalization trends that characterize today’s world economy.

Although empirical evidence shows that the relationship between foreign direct investment (FDI) and trade is complex, theories of international investment (both vertical and horizontal) present simple patterns of relation.By allowing for different locations of vertically-related stages of...

This paper models the location of two vertically related firms in a low labor cost country and in a country with a large market. The upstream industry is more labor intensive than the downstream industry. We find that spatial fragmentation occurs for low values of the input-output coefficient...