We study how import competition affects the regional concentration of industry location in a small open economy with two regions. Industry concentration is linked with firm-level investment in process innovation through an import competition effect that is increasing in the market share of imported goods and the productivity differential of domestic firms with the rest of the world. We show that increased import competition, through a larger number of imported goods or a faster international rate of productivity growth, leads to greater regional industry concentration by reducing domestic market entry and decreasing the relative productivity of domestic firms.

中文翻译：

---

生产率增长的小国模型中的进口竞争和产业定位

我们研究了在具有两个区域的小型开放经济体中，进口竞争如何影响产业区位的区域集中度。行业集中度通过进口竞争效应与企业层面对工艺创新的投资相关联，进口竞争效应正在增加进口商品的市场份额以及国内企业与世界其他地区的生产力差异。我们表明，通过更多数量的进口商品或更快的国际生产率增长率，进口竞争加剧，通过减少国内市场进入和降低国内企业的相对生产率，导致更大的区域产业集中度。