Download this Paper Open PDF in Browser

Factor Mobility, Economic Integration and the Location of Industry

Center for International Economic Studies Working Paper No. 130

29 Pages Posted: 21 Dec 2001  

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Date Written: June 2001

Abstract

This paper examines the importance of factor mobility within countries for the manifestation of agglomeration and location effects emphasized in the new economic geography literature. Working with a model of trade under monopolistic competition, the relationship of factor mobility (in particular labor) to industry adjustment and relocation is developed analytically, and then illustrated with a computational example. The computational exercise involves a notional reduction in trading costs within the European Union.

Keywords: specialization, trade and development, location of industry, agglomeration

JEL Classification: F12, O12, O41

Suggested Citation

Francois, Joseph F., Factor Mobility, Economic Integration and the Location of Industry (June 2001). Center for International Economic Studies Working Paper No. 130. Available at SSRN: https://ssrn.com/abstract=294578 or http://dx.doi.org/10.2139/ssrn.294578

Joseph Francois (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Paper statistics

Downloads
233
Rank
113,435
Abstract Views
2,518