Strategic investment and industry location in a footloose capital model of economic geography

摘要

This paper examines how strategic investment of capitalists affects the industry location in a footloose capital model. We show that the home market effect is robust but is moderated when capitalists strategically invest. That is, the industry location is closer to dispersion when capitalists are strategic than when they are atomic. (C) 2021 Elsevier B.V. All rights reserved.