Impact of trade liberalization on the location of firms : NAFTA and the automobile industry

Auteur :
KIM, H.Y.

Description :
A multiregional monopolistic-competition model is constructed, which accomodates three types of vehicle assembler and two classes of vertically linked parts supplier. By revealing the changes in potential profits of the firms in each region, the partial equilibrium model allows to identify the types of automobile that will most likely be produced in Mexico as a result of reductions in tariffs and non-tariff barriers. As trade barriers fall, producers of small cars will find it more desirable than large-car manufacturers to operate in Mexico.


Type de document :
Article de périodique

Source :
The Annals of regional science, issn : 0570-1864, 2003, vol. 37, n°. 1, p. 149-173, nombre de pages : 25, Collation : Illustration, Références bibliographiques : 28 ref.

Date :
2003

Editeur :
Pays édition : Allemagne, Berlin, Springer