2013 Fiscal Year Final Research Report
Firm location, foreign direct investment, and policies in service industry
Project/Area Number |
23730244
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Research Category |
Grant-in-Aid for Young Scientists (B)
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Allocation Type | Multi-year Fund |
Research Field |
Applied economics
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Research Institution | Tohoku Gakuin University |
Principal Investigator |
KURATA Hiroshi 東北学院大学, 経済学部, 准教授 (60411245)
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Project Period (FY) |
2011 – 2013
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Keywords | 国際経済学 / 国際貿易 / サービス産業 / 企業立地 / 海外直接投資 / 不完全競争 |
Research Abstract |
We evaluated firm location and foreign direct investment in service industry from the viewpoint of economic welfare and theoretically considered desirable policies to be implemented. We obtained the following results: (1) In the regions with different intrinsic costs, there are some possibilities that firms excessively locate in the region with higher costs. (2) Decreasing difference in costs between regions may not be desirable for consumers, which implies that governments need to care consumers when they implement policies for service costs. (3) In free entry in both intermediate-good and final-good industries, under some condition, firms may insufficiently enter the markets from the welfare viewpoint. (4) The number of firms entering the market or locating in the region are strongly affected by the external economies of scale and economic integration.
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