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This paper examines how the decline of communication costs between management and production facilities within firms … and the decrease in trade costs of manufactured goods affect the spatial organization of a two-region economy with multi …-unit/multi-plant firms. The development of information technology decreases the costs of communication and trade costs. Thus, the …
Persistent link: https://www.econbiz.de/10005534141
We study the effects of a decrease in inter-city transport costs on the spatial distribution of population in a multi … transport costs are reduced gradually from a very high level to a very low level, there is a first phase in which large cities … to vary as transport costs are reduced from large to small values, it first decreases and then increases …
Persistent link: https://www.econbiz.de/10012760816
This paper analyses industrial policy in a high wage open economy hosting an agglomeration consisting of vertically linked upstream and downstram firms. We show that optimal policy towards upstream in-dustries typically di¤er from the optimal policy towards downstream industries.
Persistent link: https://www.econbiz.de/10005672019
This paper presents an overview of recent development in the new economic geography (NEG), and discusses possible …
Persistent link: https://www.econbiz.de/10005816505
centripetal forces. A finding of the basic model is that transport costs can be crucial for the emergence of a center …The achievement of the New Economic Geography is that a way for formal declaration as a result of agglomeration …
Persistent link: https://www.econbiz.de/10015214259
stronger the market power of firms as well as the intensity of increasing returns to scale and the lower the trade costs. As …
Persistent link: https://www.econbiz.de/10010295580
-agglomeration (fewer cities, which tend to be over-sized) and low welfare; ii) the higher the level of spatial (i.e. transport costs) and …
Persistent link: https://www.econbiz.de/10011324971
the main features of the recent economic geography literature while allowing for the derivation of analytical results by …
Persistent link: https://www.econbiz.de/10005478915
This Paper focuses on two distinct facets of globalization: the decrease in the trade costs of goods and the decline of … communication costs between headquarters and production facilities within firms. When the unskilled have about the same wage in the … two regions, the decrease of these costs fosters the gradual agglomeration of plants in the core region accommodating the …
Persistent link: https://www.econbiz.de/10005498045
Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this...
Persistent link: https://www.econbiz.de/10005498074