- Title
- Implications of static and dynamic effects of economic integration for investment inflows and outflows using theories on industrial location: A theoretical debate
- Creator
- Mutambara, Tsitsi E
- Subject
- To be catalogued
- Date
- 2021
- Type
- text
- Type
- article
- Identifier
- http://hdl.handle.net/10962/473143
- Identifier
- vital:77610
- Identifier
- https://ijbel.com/previous-issues/april-june-and-august-2021/vol-24-august-2021-issue-6/
- Description
- Both the static and dynamic effects of economic integration have implications for investment inflows into a regional group, as well as relocation of investment by firms already domiciled in the regional group. Therefore, economic integration theory has become increasingly concerned about the locational effects of economic integration arrangements, thus giving rise to the growing interest by trade theorists in the importance of geography. New models of trade which incorporate factor mobility, external economies of scale and product competition, have established the importance of location in the analysis of the effects of economic integration arrangements. This research article therefore seeks to examine the implications of economic integration for industry location given the various theoretical debates with regard to locational choices of industries. This is done by reviewing theoretical arguments based on the Traditional theory of industrial location, the Marshallian theory, the theory of New economic geography, Weber’s theory and Dunning’s ownership, location and internalisation (OLI) theory. Arguments are thus presented to illustrate and explain how the static and dynamic effects of economic integration motivate industry location by creating the locational factors which the respective industry location theories present as key determinants for industry location. By examining the interplay between the key locational factors in the various theories and the static and dynamic effect of economic integration, this study shows that by viewing the theories of industrial location theories separately, each theory alone cannot answer adequately the question of industrial location and even agglomeration, despite highlighting and clarifying relevant factors. Therefore, the various theories must be integrated in order to understand the dynamics with which economic integration has implications for investment flows.
- Format
- 9 pages, pdf
- Language
- English
- Relation
- International Journal of Business, Economics and Laws, Mutambara, T.E., 2021. Implications of static and dynamic effects of economic integration for investment inflows and outflows using theories on industrial location: A theoretical debate. International Journal of Business, Economics and Law, 24(6), pp.17-27, International Journal of Business, Economics and Laws volume 24 number 6 17 27 2021 2289-1552
- Rights
- Publisher
- Rights
- Use of this resource is governed by the terms and conditions of the International Journal of Business, Economics and Law Statement (https://ijbel.com/)
- Hits: 12
- Visitors: 16
- Downloads: 3
Collections
Mutambara, Tsitsi Effie (Assoc Prof)
SDG 08. Decent Work and Economic Growth
RU Department of Economics and Economic History
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | Implications of static and dynamic effects of economic integration for investment inflows and outflows using theories on industrial location.pdf | 397 KB | Adobe Acrobat PDF | View Details |