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Discussion Paper Details

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Title: Industry Reallocations in a Globalizing Economy

Author(s): Kristian Behrens, Giordano Mion and Gianmarco Ottaviano

Publication Date: January 2007

Keyword(s): economic geography, firm heterogeneity, international integration, multinationals and resource reallocation

Programme Area(s): International Trade and Regional Economics

Abstract: We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the numerical implementation of a theoretical framework calibrated on European data, which encompasses aspects of economic geography, firm heterogeneity, and firms' organizational choices. Our final purpose is to provide a comprehensive background for empirical investigations and to stimulate further theoretical research.

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Bibliographic Reference

Behrens, K, Mion, G and Ottaviano, G. 2007. 'Industry Reallocations in a Globalizing Economy'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6049