Industrial Mobility and Public Policy
In: Contributions to Economics
The book focuses on the consequences of industrial mobility for optimal public policy. A theoretical framework is introduced: There are several locations with independent governments, industries differ in mobility, and there are local markets for some resources (for instance, labour). The framework allows to explain that governments favour mobile industries in comparison to local immobile industries. Several determinants of industrial policy in favour of mobile industries are considered: Supply of local resources, demand for outputs, asymmetries between industries and locations, emissions, labour mobility, etc. Moreover, it is discussed how industrial policy in favour of mobile industries translates into environmental policy and social policy. The approach and the results are new, the methods are basic