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Trade and Industrial Location with Heterogeneous Labor
Mary Amiti
Christopher A. Pissarides
出版
International Monetary Fund
, 2004-06
主題
Business & Economics / General
Business & Economics / Labor / General
Business & Economics / Economics / Macroeconomics
Business & Economics / Industries / Manufacturing
ISBN
145185272X
9781451852721
URL
http://books.google.com.hk/books?id=xm23AAAAIAAJ&hl=&source=gbs_api
註釋
We show in the context of a new economic geography model that when labor is heterogenous trade liberalization may lead to industrial agglomeration and interregional trade. Labor heterogeneity gives local monopoly power to firms but also introduces variations in the quality of the job match. Matches are likely to be better when there are more firms and workers in the local market, giving rise to an agglomeration force that can offset the forces against trade costs and the erosion of monopoly power. We derive analytically a robust agglomeration equilibrium and illustrate its properties with numerical simulations.