要旨：We extend the model of Haufler and Wooton (1996) and construct a model with three countries in which a firm selects its location. A firm can select a location country from two countries, while in the third country, there is a market for the firm and are competitive rival firms. Then, the effect of the third country's market induces the firm to locate at a closer country from the third country. On the other hand, the effect of the existence of rival firms makes the firm to locate at a further country from the third country. With this framework, we study the location behavior of the firm, and consequences of tax competition between two countries and two countries' trade union.

要旨：This paper empirically tests the relationship among wage, market potential and interregional migration using structural estimation method in the framework of economic geography. We investigate migration of manufacturing workers between 47 Japanese prefectures. As a result we find that nominal wage is positively correlated with market potential and higher real wage prefecture attracts workers.