Global infrastructure and production division by heterogeneous firms

Xu, Daming and Kobayashi, Kiyoshi and Matsushima, Kakuya and Hasan, Sharina Farihah and Segi, Shunsuke (2018) Global infrastructure and production division by heterogeneous firms. In: Economic Integration and Regional Development The ASEAN Economic Community. Routledge. ISBN 9780367350765

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Abstract

The authors developed a pure theoretical economic model to discuss the economy-wide welfare implications of the shifts in production locations of multinational firms. The chapter formulates a model based on the Ricardian trade theory of comparative advantage, where firms decide the production location according to labor productivity, wage and their production technology. The constructed model illustrates how reduced cross-border cost facilitates the global division of labor as well as improves the welfare of every country under foreign direct investment. It theoretically shows the value of facilitating cross-border supply chains in terms of regional development.

Item Type:	Book Chapter
Uncontrolled Keywords:	Multinational firms, Production divisions, Ricardian trade theory
Subjects:	H Social Sciences > HB Economic Theory > HB131 Methodology.Mathematical economics. Quantitative methods
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Architecture and Environmental Design > Department of Quantity Surveying
Depositing User:	Dr. Sharina Farihah Hasan
Date Deposited:	28 Aug 2024 15:31
Last Modified:	28 Aug 2024 16:50
URI:	http://irep.iium.edu.my/id/eprint/114097

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