TY  - BOOK
AU  - Takahashi,Toshiaki
AU  - Takatsuka,Hajime
AU  - Zeng,Dao-Zhi
TI  - Spatial inequality, globalization, and footloose capital
SN  - 0938-2259
AV  - HB119 ECO 
PY  - 2013///
CY  - Berlin
PB  - Springer
KW  - Spatial inequality
KW  - Footloose capital
KW  - Globalization
N2  - This paper shows the equivalence of spatial inequalities in industrial location and in income by revisiting the home market effect (HME) without any homogeneous good based on a reconstructed footloose capital model. In this simple framework, spatial inequalities in industrial location and in income are the HMEs in terms of firm share and wage, respectively. We show that the larger country has a more-than-proportionate share of firms and a higher wage. Furthermore, both the wage differential and the industrial location in the larger country evolve in an inverted U-pattern when transport costs decline. Finally, we analytically examine the effects of trade liberalization on the welfare and show that both countries may gain from globalization
UR  - https://doi.org/10.1007/s00199-011-0686-7
ER  -