A note on agglomeration and the location of multinational firms
AbstractA classification of the locational patterns of firms (with economies of scale and scope present) is outlined in order to shed light on the location of the multiplant, multinational firm, which is driven by three forces: spatial economies of scale and scope that follow from the co-location of different activities sharing a common fixed input; transportation costs on the final good; and factor-mobility costs. We conclude that the single-plant firm prevails when spatial economies of scale and scope are pronounced, while multi-plant firms emerge when spatial economies of scale and scope are weak. However, the vertical multinational firm is to be found when transportation costs on the finished good are low, whereas the horizontal multinational firm emerges when these costs are high. The vertical multinational thus appears as the limit in the evolution of the market structure for most consumer goods. Copyright RSAI 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Papers in Regional Science.
Volume (Year): 84 (2005)
Issue (Month): 3 (08)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Broll, Udo & Roldán-Ponce, Antonio & Wahl, Jack E., 2007. "Barriers to Diversification and Regional Allocation of Capital," Dresden Discussion Paper Series in Economics 14/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.