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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
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
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/10010957404
features of the recent economic geography literature while allowing for the derivation of analytical results by means of simple … migration in the process of agglomeration instead of the simple Marshallian model used so far in the economic geography …
Persistent link: https://www.econbiz.de/10011608524
-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
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
This paper focuses on two distint 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/10005008176
We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy …, when a rise in the regional population of workers generates higher urban costs. When the number of cities is unaffected by … falling trade costs, small cities become smaller for large trade costs, medium-sized cities become smaller for medium values …
Persistent link: https://www.econbiz.de/10005123704
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