| 1. |
- Forslid, Rikard, et al.
(författare)
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Agglomeration of low-productive entrepreneurs to large regions : a simple model
- 2021
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Ingår i: Spatial Economic Analysis. - : Informa UK Limited. - 1742-1772 .- 1742-1780. ; 16:4, s. 471-486
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Tidskriftsartikel (refereegranskat)abstract
- This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.
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| 2. |
- Forslid, Rikard, et al.
(författare)
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Big is Beautiful when Exporting
- 2016
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Ingår i: Review of International Economics. - : Wiley. - 0965-7576 .- 1467-9396. ; 24:2, s. 330-343
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Tidskriftsartikel (refereegranskat)abstract
- This paper starts out from the observation that the export ratios of firms (export to sales ratios) vary greatly among firms and that they are systematically higher for larger exporters. We relate the difference in export ratios to firm-level differences in transport costs. In accordance with the data, we assume that freight rates are a function of firm-level export volumes. We test our model using Japanese manufacturing firm-level data. We first estimate the elasticity of the freight rate with respect to firm-level export volumes at the sector level. When feeding these estimates back into the model, it can explain more than 50% of the variation in firm-level export ratios.
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| 3. |
- Forslid, Rikard, et al.
(författare)
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On the development strategy of countries of intermediate size an analysis of heterogeneous firms in a multi region framework
- 2012
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 56:4, s. 747-756
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Tidskriftsartikel (refereegranskat)abstract
- This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in particular for the country of intermediate size. Unless the intermediate country is very small, in a relative sense, it will gain industry when relocation costs are reduced, but lose industry when trade costs are reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the opposite.
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| 4. |
- Forslid, Rikard, 1961-, et al.
(författare)
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Premature agglomeration? Two phases of development with spatial sorting
- 2024
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Ingår i: Manchester School. - 1463-6786 .- 1467-9957.
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Tidskriftsartikel (refereegranskat)abstract
- Clusters in the developing world do, to a large extent, attract low-educated individuals, and these clusters are in some cases, characterized by urbanization without industrialization. This contrasts starkly to clusters in advanced economies that attract high-skilled individuals and entrepreneurs. In this paper, we develop a model of agglomeration and spatial sorting that is consistent with these two types of different agglomeration processes in developed and developing countries. We show that a poor country that has an agglomeration with low skilled individuals, may get stuck in this equilibrium, but that free mobility of human capital from the outset nevertheless is superior from the perspective of total social welfare.
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| 5. |
- Forslid, Rikard, et al.
(författare)
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Spatial sorting with heterogeneous firms and heterogeneous sectors
- 2014
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Ingår i: Regional Science and Urban Economics. - : Elsevier BV. - 0166-0462 .- 1879-2308. ; 46, s. 42-56
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Tidskriftsartikel (refereegranskat)abstract
- The present paper focuses on spatial sorting as a mechanism behind the well-established fact that there is a central region productivity premium. Using a model of heterogeneous firms that can move between regions, Baldwin and Okubo (2006) show how more productive firms sort themselves to the large core region. We extend this model by introducing different fixed costs in terms of capital among firms and sectors. In accordance with empirical evidence, more productive firms are assumed to be associated with a higher fixed cost in terms of capital. As a result, our model can produce sorting to the large regions from both ends of the productivity distribution. Firms with high capital intensity and high productivity as well as firms with very low productivity and low capital intensity tend to relocate to the core. We use Japanese micro data to explore the predictions of the model. Many sectors show patterns that are consistent with two-sided sorting. We also find supportive evidence for our model prediction that two-sided sorting occurs in sectors with a high capital intensity.
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| 6. |
- Forslid, Rikard, et al.
(författare)
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Trade Liberalization, Transboundary Pollution, and Market Size
- 2017
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Ingår i: Journal of the Association of Environmental and Resource Economists. - : University of Chicago Press. - 2333-5955 .- 2333-5963. ; 4:3, s. 927-957
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Tidskriftsartikel (refereegranskat)abstract
- This paper uses a monopolistic competitive framework to study the impact of trade liberalization on local and global emissions. We focus on the interplay of asymmetric emission taxes and the home market effect and show how a large-market advantage can counterbalance a high emission tax, so that trade liberalization leads firms to move to the large high-tax economy. Global emissions decrease when trade is liberalized in this case. We then simulate the model with endogenous taxes. The larger country, which has the advantage of the home market effect, will be able to set a higher Nash emission tax than its smaller trade partner yet still maintain its manufacturing base. As a result, a pollution haven will typically not arise in this case as trade is liberalized. However, global emissions increase as a result of international tax competition, which underscores the importance of international cooperation as trade becomes freer.
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| 7. |
- Forslid, Rikard, 1961-, et al.
(författare)
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Trade, location, and multi-product firms
- 2023
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Ingår i: Regional Science and Urban Economics. - : Elsevier BV. - 0166-0462 .- 1879-2308. ; 100
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Tidskriftsartikel (refereegranskat)abstract
- In this paper we study how trade liberalization affects the location and the product scope of firms. We find that the largest and most productive multi-product firms concentrate to the larger market as a result of trade liberalization. In the presence of relocation costs, we also find that these firms will expand their product scope in the larger market while firms in the smaller market will contract their product scope or expand it to a smaller degree. The adjustment of firms’ product scope can therefore be a substitute for firm relocation, and the cost of introducing new varieties becomes an important parameter, that influences the degree of agglomeration.
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| 8. |
- Forslid, Rikard, et al.
(författare)
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WHICH FIRMS ARE LEFT IN THE PERIPHERY? : SPATIAL SORTING OF HETEROGENEOUS FIRMS WITH SCALE ECONOMIES IN TRANSPORTATION
- 2015
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Ingår i: Journal of regional science. - : Wiley. - 0022-4146 .- 1467-9787. ; 55:1, s. 51-65
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Tidskriftsartikel (refereegranskat)abstract
- This paper introduces scale economies in transportation in a trade and geography model with heterogeneous firms. This relatively small change to the standard model produces a new pattern of spatial sorting among firms. In contrast to the existing literature, our model produces the result that firms of intermediate productivity relocate to the large core region, whereas high-and low-productivity firms remain in the periphery. Trade liberalization leads to a gradual relocation to the core with the most productive firms remaining in the periphery.
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| 9. |
- Forslid, Rikard, et al.
(författare)
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Why are firms that export cleaner? International trade, abatement and environmental emissions
- 2018
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Ingår i: Journal of Environmental Economics and Management. - : Elsevier BV. - 0095-0696 .- 1096-0449. ; 91, s. 166-183
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Tidskriftsartikel (refereegranskat)abstract
- This paper proposes a detailed mechanism for why exporting firms may have a lower emission intensity when emissions are subject to an environmental tax. This mechanism of our model is supported by Swedish firm-level data. Our mechanism runs through firms' endogenous investments in abatement. Firms' abatement investments depend on their production volumes, since a larger scale allows them to spread the fixed costs of abatement investment across more units. Production volumes increase in firm productivity and, as a consequence, firms' emission intensity is negatively related to firm productivity. Exporting also leads to higher production volumes and thereby to a lower emission intensity. Thus, trade has an effect on emissions independently of firm productivity. Trade therefore leads to higher but cleaner production. The overall effect of trade on emissions is neutral in our model. Trade liberalization does not affect aggregate emissions in our benchmark case of symmetric countries.
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