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The effect of foreign trade and investment liberalization on spatial concentration of economic activity

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  • Kandogan, Yener

Abstract

I examine the varying responses of countries to foreign trade and direct investment liberalization on spatial concentration of their economic activity by taking into consideration moderating factors such as their market size and level of economic development. I argue that liberalization increases the concentration under normal conditions but large market size, and underdevelopment can disperse economic activity. Using data from 168 countries for the period of time starting in 1980s, I found support for all hypotheses.

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  • Kandogan, Yener, 2014. "The effect of foreign trade and investment liberalization on spatial concentration of economic activity," International Business Review, Elsevier, vol. 23(3), pages 648-659.
    • Handle: RePEc:eee:iburev:v:23:y:2014:i:3:p:648-659
    DOI: 10.1016/j.ibusrev.2013.11.005
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    4. Jie Zhang & Yinxiao Qu & Yun Zhang & Xiuzhen Li & Xiao Miao, 2019. "Effects of FDI on the Efficiency of Government Expenditure on Environmental Protection Under Fiscal Decentralization: A Spatial Econometric Analysis for China," IJERPH, MDPI, vol. 16(14), pages 1-19, July.
    5. Dorożyński Tomasz & Urbaniak Wojciech & Świerkocki Janusz, 2015. "The Location Premises Of FDI In Poland. The Case Of The Lodz Province / Przesłanki Lokalizacji Biz w Polsce. Przykład Regionu Łódzkiego," Comparative Economic Research, Sciendo, vol. 18(4), pages 157-178, December.
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