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Globalization, industrial policy and clusters

Midelfart, Karen Helene; Forslid, Rikard
Working paper
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dp2001-30.pdf (241.1Kb)
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http://hdl.handle.net/11250/162924
Utgivelsesdato
2001-12
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  • Discussion papers (SAM) [586]
Sammendrag
This paper analyses industrial policy in a high wage open economy

hosting an agglomeration consisting of vertically linked upstream and

downstream firms. We show that optimal policy towards upstream industries

typically differ from the optimal policy towards downstream

industries. Internationalisation impacts on the costs as well as on the

benefits related to sustaining an industrial agglomeration. Whether

maintaining the agglomeration is compatible with a welfare maximizing policy is shown to depend on level of economic integration.
Utgiver
Norwegian School of Economics and Business Administration. Department of Economics
Serie
Discussion paper
2001:30

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