In this paper, we aim to provide insights into two main questions: First, which firms set up plants in which locations? Second, what determine the scale and location of production? Answering these questions requires us to think about plants and firms as distinct, albeit related, economic entities.

To study the allocation of workers across cities, we propose and quantify a spatial equilibrium model with multiple industries that employ CNR and alternative (non-CNR) occupations.

We study the impact of intersectoral and interregional trade linkages in propagating disaggregated productivity changes to the rest of the economy.