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The Home Market Effect in Models with Multinational Enterprises

Title data

Larch, Mario:
The Home Market Effect in Models with Multinational Enterprises.
In: Review of International Economics. Vol. 15 (2007) Issue 1 . - pp. 62-74.
ISSN 1467-9396
DOI: https://doi.org/10.1111/j.1467-9396.2007.00673.x

Abstract in another language

Trade patterns in New Trade Theory models and agglomeration patterns in New Economic Geography models crucially depend on the effect that a higher local demand for products leads to a larger share of production of these products, namely the home market effect. Multinationals could exploit higher foreign demand without incurring transport costs by setting up a plant abroad, which destroys the driving force of the home market effect. This paper demonstrates that in the presence of multinationals the home market effect reappears via a different channel, relying on the repatriation of profits rather than on interindustry trade.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Home market effect; Multinationals; Transport
Subject classification: F12, F23
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI: Empirical Economic Research
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI: Empirical Economic Research > Chair Economics VI: Empirical Economic Research - Univ.-Prof. Dr. Mario Larch
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Result of work at the UBT: No
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 14 Oct 2015 11:37
Last Modified: 14 Oct 2015 11:37
URI: https://eref.uni-bayreuth.de/id/eprint/16596