Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7349797 | Economics Letters | 2017 | 9 Pages |
Abstract
This paper explores how interactions between interregional and international trade shape the effects of entry costs on cross-region productivity disparity within a country. In a two-country three-region Melitz model, compared with an autarky, regional productivity disparity in an open economy resulting from entry costs differentials widens further if interregional transportation costs are low, and shrinks when they are high.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Guohua Peng,