【摘要】This  paper  analyses  the  effects  of  reducing  trade  costs  on  the  location  of manufacturing firms that are vertically linked and differ in factor intensities. I extend the new economic  geography  literature,  by  embedding  a  model  with  vertical  linkages  within  a Heckscher-Ohlin framework. Firms can choose to locate either in a labour abundant country or a capital abundant country. I show that lower trade costs on intermediate inputs and final goods can lead to an agglomeration of all upstream and downstream firms in one country, even when they differ in  factor  intensities.  Hence,  for  some  range  of  trade  costs  industries  may  locate  in countries  where  standard  trade  models  would  suggest  they  would  not  locate.  For example labour intensive industries may locate in capital abundant countries. This also has implications for whether trade liberalisation leads in the direction of factor price equalisation. If the share of manufacturing  is  high,  trade  liberalisation  (from  high  to  medium)  leads  to  an  increase  in  the return to both factors in the country where manufacturing agglomerates

【关键词】downstream firms, trade liberalisation, trade costs, upstream firms, vertical link

【文献来源】Mary, Amiti.Location of vertically linked industries: agglomeration versus comparative advantange .European Economic Review ,2005 ,49(4).