Article ID Journal Published Year Pages File Type
7349797 Economics Letters 2017 9 Pages PDF
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
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