Essays on trade and industrial policy

Llanos Paredes, Pedro (2023) Essays on trade and industrial policy. PhD thesis, London School of Economics and Political Science.

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Abstract

Deindustrialisation has been considered as one of the main causes of persistent regional inequalities and political polarisation across the developed world. This thesis compiles a theoretical introduction and three empirical essays on its causes, and the policies that can be employed to mitigate its adverse effects. The first chapter reviews the literature highlighting the unique contributions of this thesis to the fields of economic geography, public policy, and innovation studies. The second examines the industry and regional-level effects of increased import competition from China on manufacturing employment across 20 European countries. It finds a large negative effect that has persisted even after many years since trade with China stabilised. The third chapter deals with the effect of the Fraunhofer Society, Europe’s largest network of applied research institutes, on the productivity of firms and individual inventors. Its results show that applied research centres can increase the patent output of firms, especially in places that provide complementary support to R&D activities. Finally, the fourth chapter explores the mechanisms through which the GRW, a major investment subsidy scheme in Germany, can impact firm growth and employment. The results show that cost-shared investment aid can incentivise further investment in physical capital, allowing for a rise sales and substantial employment gains.

Item Type:	Thesis (PhD)
Additional Information:	© 2023 Pedro Llanos-Paredes
Library of Congress subject classification:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Sets:	Departments > Geography and Environment
Supervisor:	Lee, Neil and Holman, Nancy
URI:	http://etheses.lse.ac.uk/id/eprint/4613

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