Regional integration and the location of multinational corporations: implications for comparative advantage and welfare of outsiders and insiders

The issues addressed in this thesis concern the implications of factor mobility through multinational firms on a country's specialization and comparative advantage.
Special attention is directed towards integration and the response by insider and outsider firms. Although focus is on the empirical analysis, the theoretical side is not neglected and both general equilibrium and partial equilibrium effects of FDI are considered in the thesis.
It is shown how the traditionally strong results in integration theory hinge on the assumption of factor mobility being restricted to sectors within a country, while allowing for international mobility generates ambiguous results with regard to specialization in production and trade.
The empirical analyses focus on the relation between the incidence of profits among firms and differences in their endowments of knowledge stocks, the effects of trade cost on FDI, differences in production costs and size of markets, and, finally, agglomeration patterns in the location of foreign subsidiaries.

Publication infos:
Genève, Institut universitaire de hautes études internationales, 1995
Publication year:
Number of pages:
XII, 91 p.
PhD Director(s):
Directeur de thèse: Professeur Richard Blackhurst
Call number:

 Record created 2011-06-03, last modified 2019-09-30

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