Mobile Capital, Variable Elasticity of Substitution, and Trade Liberalization

in economics •  7 years ago 

By a News Reporter-Staff News Editor at Business & Finance Week -- A new study on Economics - Economic Geography is now available. According to news reporting originating from Miyagi, Japan, by VerticalNews correspondents, research stated, “This article investigates the impact of trade liberalization on trade patterns, firm markups, and firm locations in a two-factor monopolistic competition model that features variable elasticity of substitution by a general additively separable utility. We find that, depending on the relative export hurdles, either direction of one-way trade may occur when trade opens up.”

Our news editors obtained a quote from the research from Tohoku University, “Its direction determines the responses of firm-level markups and various home market effects to falling trade costs. Our results show that some important findings in the literature are robust only with particular classes of preferences.”

According to the news editors, the research concluded: “We provide a possible rationale for some well-known conflicting empirical facts.”

For more information on this research see: Mobile Capital, Variable Elasticity of Substitution, and Trade Liberalization. Journal of Economic Geography , 2018;18(2):461-494. Journal of Economic Geography can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - http://www.oup.com/; Journal of Economic Geography - joeg.oxfordjournals.org)

The news editors report that additional information may be obtained by contacting D.Z. Zeng, Tohoku University, Grad Sch Informat Sci, Sendai, Miyagi 9808579, Japan.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/jeg/lbx022. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2018, NewsRx LLC

CITATION: (2018-04-21), Researchers’ Work from Tohoku University Focuses on Economic Geography (Mobile Capital, Variable Elasticity of Substitution, and Trade Liberalization), Business & Finance Week, 95, ISSN: 1945-6441, BUTTER® ID: 015501502

From the newsletter Business & Finance Week.
https://www.newsrx.com/Butter/#!Search:a=15501502


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