Market size in globalization

• Kato, Hayato

• Okubo, Toshihiro

Abstract

Hayato Kato, Toshihiro Okubo, Market size in globalization, Journal of International Economics, Volume 111, 2018, Pages 34-60, ISSN 0022-1996, https://doi.org/10.1016/j.jinteco.2017.12.003.

A salient feature of the current globalization is a loss of manufacturing in developed countries and rapid industrialization in middle-sized developing countries. This paper aims to construct a simple three-country trade and geography model with different market sizes and non-constant wage rates. The large country fosters industrial agglomeration (geographical concentration) in the early stage of globalization, but loses manufacturing in the later stage of globalization. When losing manufacturing, the large country might be worse off. Thus, the large country might have an incentive to implement welfare-maintaining policies to prevent a loss of manufacturing. All of these results can be explained by market sizes.

Journal

• Journal of International Economics

  Journal of International Economics 111 34-60, 2018-03

  Elsevier

Keywords

• Agglomeration
• Market size
• Middle-sized country
• Non-constant wages
• Industry/welfare maintaining policy

Details

• CRID: 1050018218947507584
• NII Article ID: 120007042096
• NII Book ID: AA0024302X
• DOI: 10.1016/j.jinteco.2017.12.003
• ISSN: 18730353
• ISSN: 00221996
• HANDLE: 11094/81782
• Web Site: https://api.elsevier.com/content/article/PII:S0022199617301459?httpAccept=text/xml
• Web Site: https://api.elsevier.com/content/article/PII:S0022199617301459?httpAccept=text/plain
• Text Lang: en
• Article Type: journal article
• Data Source:
  • IRDB
  • Crossref
  • CiNii Articles
  • KAKEN