Multinational Firms and The New Trade Theory

Preprint OPEN
James R. Markusen; Anthony J. Venables;
  • Subject:
    • jel: jel:F12 | jel:F23

A model is constructed in which multinational firms may arise endogenously. Multinationals exist in equilibrium when transport and tariff costs are high, incomes are high, and firm-level scale economies are important relative to plant-level scale economies. Less obvious... View more
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