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Title: | First nature vs. second nature causes: industry location and growth in the presence of an open-access renewable resource |
Author: | González-Val, Rafael Pueyo, Fernando |
Keywords: | Localització industrial Energies renovables Geografia econòmica Industrial location Renewable energy sources Economic geography |
Issue Date: | 2010 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB10/39] |
Abstract: | In this paper we present a model integrating characteristics of the New Economic Geography, the theory of endogenous growth and the economy of natural resources. This theoretical framework enables us to study explicitly the effect of “first nature causes” in the concentration of economic activity, more specifically, the consequences of an asymmetrical distribution of natural resources. The natural resource we consider appears as a localized input in one of the two countries, giving firms located in that country a cost advantage. In this context, after a decrease in transport costs, firms decide to move to the country with the greatest domestic demand and market size, where they can take more advantage of increasing returns, despite the cost advantage of locating in the South, due to the presence of the natural resource. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2010/39 |
URI: | http://hdl.handle.net/2445/116856 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB10-39_GzlezVal+Pueyo.pdf | 620.66 kB | Adobe PDF | View/Open |
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