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Journal Articles Economics Letters Year : 2012

Input substitutability, trade costs and location

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Abstract

Constant unit manufacturing costs are lower (higher) in high wage North when inputs are (i) tradeable, (ii) country-specific and (iii) the elasticity of substitution between them is below (above) one. A two-country model of firm entry/location is considered.
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hal-00738265 , version 1 (03-10-2012)

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Tomasz Michalski. Input substitutability, trade costs and location. Economics Letters, 2012, 117 (1), pp.57-59. ⟨10.1016/j.econlet.2012.04.105⟩. ⟨hal-00738265⟩

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