Three essays in international trade and the location of production

Chapter 1 builds a three-country version of the Footloose Capital model with asymmetric trade costs and offers a revised definition of the home market effect (HME) valid in a multi-country setting. It demonstrates under which conditions access to foreign markets is important and how changes in trade costs shape industrial location
Chapter 2 derives an empirical specification of the HME and estimates the evolution of manufacturing production across European Union countries. The HME is found in eleven industries. The results emphasize the importance of countries' access to foreign markets
Chapter 3 blends offshoring with a Melitz-style model. It shows that offshoring is predominantly done by large, most efficient firms. Offshoring reduces per-firm labour demand is smaller firms of the offshoring nation, but has ambiguous effects in larger firms and the overall sector employment. Freer trade is a necessary condition to ensure an increase in sector's employment when offshoring occurs

Publication infos:
Genève, Institut de hautes études internationales et du développement, 2009
Publication year:
Number of pages:
139 p.
PhD Director(s):
Directeur de thèse: Professeur Richard Baldwin
Call number:

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

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