Firm relocation, North-South technology transfer and welfare

Simons, Alexandre
(2014)

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Authors
  • Simons, AlexandreUCLouvain
    author
Supervisors
Boucekkine, Raouf
Abstract
This thesis collects three models on North-South firm relocation. Chapter 1 studies how the presence of a multinational leads to a technology transfer to its local suppliers and also modifies the degree of backward linkages in the local economy. It identifies in which cases a multinational increases the level of backward linkages when it enters hosts markets and it investigates when the multinational could even benefit itself from transferring technology to its local suppliers. Chapter 2 deals with delocation and welfare. It shows that welfare in the North increases when the host country is not technologically too lagged and that vertical technology transfer to the South plays a major role in enhancing welfare of workers-consumers in the North and in the South. Finally, chapter 3 provides a Schumpeterian growth model endogenously generating demand-driven patterns of vertical intra-industrial trade. It gives a new explanation of the endogenous emergence of multi-location, multi-quality firms. The existence of such firms and income inequality among consumers both across and within countries then generate and shape rich patterns of intra-industrial vertical trade and FDI, with the extent of income disparities also conditioning the incentives to invest in R&D.
Affiliations
  • Institution iconUCLouvainSSH/IMAQ/IRES-Institut de recherches économiques et sociales

Citations

Simons, A. (2014). Firm relocation, North-South technology transfer and welfare. https://hdl.handle.net/2078.5/51916