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Geographic concentration and establishment size: analysis in an alternative economic geography model

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Author Info
Thomas J. Holmes
John J. Stevens

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Abstract

Big cities specialize in services rather than manufacturing. Big-city establishments in services are larger than the national average, whereas those in manufacturing are smaller. We propose an explanation of these and other related facts. The theory is developed in an economic geography model that is an alternative to the standard Dixit--Stiglitz structure. In our tractable structure, which has potentially wider application, firms have monopoly power in local markets but are price takers in export markets. Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/jnlecg/lbh018
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Publisher Info
Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 4 (2004)
Issue (Month): 3 (June)
Pages: 227-250
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Handle: RePEc:oup:jecgeo:v:4:y:2004:i:3:p:227-250

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December. [Downloadable!] (restricted)
  2. Thomas J. Holmes & John J. Stevens, 2002. "The home market and the pattern of trade: round three," Staff Report 304, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  3. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Thomas J. Holmes, 1999. "Scale of Local Production and City Size," American Economic Review, American Economic Association, vol. 89(2), pages 317-320, May. [Downloadable!] (restricted)
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
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  6. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
  7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  8. Amiti, Mary, 1998. "Inter-industry trade in manufactures: Does country size matter?," Journal of International Economics, Elsevier, vol. 44(2), pages 231-255, April. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fabrice Defever, 2006. "Functional fragmentation and the location of multinational firms in the enlarged Europe," Post-Print halshs-00118808_v1, HAL. [Downloadable!]
    Other versions:
  2. Marc J. Melitz & Gianmarco I.P. Ottaviano, . "Market Size, Trade, and Productivity," Development Working Papers 201, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  3. Octávio Figueiredo & Paulo Guimarães & Douglas Woodward, 2007. "Localization Economies and Establishment Scale: A Dartboard Approach," FEP Working Papers 247, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  4. Thomas J. Holmes & John J. Stevens, 2002. "The home market and the pattern of trade: round three," Staff Report 304, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  5. Emek Basker, 2007. "When Good Instruments Go Bad," Working Papers 0706, Department of Economics, University of Missouri. [Downloadable!]
  6. Emek Basker, 2002. "Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion," Working Papers 0215, Department of Economics, University of Missouri, revised 14 Jan 2004. [Downloadable!]
    Other versions:
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