Input substitutability, trade costs and location

Tomasz Michalski

doi:10.1016/j.econlet.2012.04.105

Journal articles

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

Document type :

Journal articles

Domain :

Humanities and Social Sciences / Economics and Finance / Economy and decision science

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https://hal-hec.archives-ouvertes.fr/hal-00738265
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Submitted on : Wednesday, October 3, 2012 - 7:43:16 PM
Last modification on : Thursday, January 20, 2022 - 4:10:04 AM

Input substitutability, trade costs and location

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Input substitutability, trade costs and location

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