TY - JOUR
T1 - Multinationals
T2 - Too many or too few? - The proximity-concentration Trade-off
AU - Toulemonde, E.
N1 - Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008/4/1
Y1 - 2008/4/1
N2 - The paper builds an analytically tractable model that illustrates the "proximity-concentration trade-off" involved in horizontal multinationals. For low trade costs, firms are single-plant firms, for intermediate costs, some are single-plant firms whereas others are multinationals, for large trade costs, firms are multinationals. Because of the modeling strategy, the model is suited for a welfare analysis of multinationals. It shows that too many firms choose to concentrate their production in only one location. Also, for some transport costs, a reduction in transport costs worsens welfare.
AB - The paper builds an analytically tractable model that illustrates the "proximity-concentration trade-off" involved in horizontal multinationals. For low trade costs, firms are single-plant firms, for intermediate costs, some are single-plant firms whereas others are multinationals, for large trade costs, firms are multinationals. Because of the modeling strategy, the model is suited for a welfare analysis of multinationals. It shows that too many firms choose to concentrate their production in only one location. Also, for some transport costs, a reduction in transport costs worsens welfare.
UR - http://www.scopus.com/inward/record.url?scp=39749188231&partnerID=8YFLogxK
U2 - 10.1007/s11079-007-9019-7
DO - 10.1007/s11079-007-9019-7
M3 - Article
AN - SCOPUS:39749188231
SN - 0923-7992
VL - 19
SP - 203
EP - 219
JO - Open Economies Review
JF - Open Economies Review
IS - 2
ER -