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Input substitutability, trade costs and location

Tomasz Michalski 1
1 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC
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.
Keywords : MANUFACTURING industries COST analysis ELASTICITY (Economics) SUBSTITUTION (Economics) MARKET entry ECONOMIC models INDUSTRIAL location WAGES
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https://hal-hec.archives-ouvertes.fr/hal-00738265
Contributor : Antoine Haldemann <>
Submitted on : Wednesday, October 3, 2012 - 7:43:16 PM
Last modification on : Thursday, January 11, 2018 - 6:19:31 AM

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

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