This paper provides a simple theory of geographical mobility which simultaneously explainspeople’s choice of residences in space and the location of industry. Residences are chosenon the basis of the utility which mobile households obtain across locations...

This paper explores the role of country asymmetries for trade and industrial policies withheterogeneous firms. Our analysis delivers a number of novel results. First, trade policies,infrastructure policies and industrial policies which improve the business conditions in onecountry have negative...

This paper pursues three aims. First, we provide a review of current theoretical advanceswhich pertain to the relationship between trade, FDI and labor markets. We do so under thefollowing (not mutually exclusive) headings: (1) slicing-up the value added chain and the turnto a task-based...

The robust empirical finding that exporting firms are systematically different from firms thatmerely serve domestic consumers has inspired the development of a new brand of tradetheory, the theory of heterogeneous firms and trade. The establishment of a canonical modeldue to Melitz (2003) has...