Krugman, P and Venables, Tony (1995) Globalization and the inequality of nations. Quarterly Journal of Economics, 110 (4). pp. 857-880. ISSN 0033-5533
Full text not available from this repository.Abstract
A monopolistically competitive manufacturing sector produces goods used for final consumption and as intermediates. Intermediate usage creates cost and demand linkages between firms and a tendency for manufacturing agglomeration. How does globalization affect the location of manufacturing and gains from trade? At high transport costs all countries have some manufacturing, but when transport costs fall below a critical value, a core-periphery spontaneously forms, and nations that find themselves in the periphery suffer a decline in real income. At still lower transport costs there is convergence of real incomes, in which peripheral nations gain and core nations may lose.
| Item Type: | Article |
|---|---|
| Official URL: | http://qje.oxfordjournals.org/ |
| Additional Information: | © 1995 The President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance |
| Date Deposited: | 27 Apr 2007 |
| Last Modified: | 17 Nov 2024 08:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/1071 |
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