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Localization of Industry and Trade Performance

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  • Venables, Anthony J

Abstract

This paper reviews recent literature on the spatial agglomeration of economic activity. This literature provides new ways of thinking about the determinants of the location of production, of trade flows, and of international income differences. Agglomeration of activity arises out of the tension between product-market and factor-market competition - which encourage a dispersed pattern of location - and externalities between firms (technological or pecuniary) which promote agglomeration. Using a framework in which intermediate goods create forward and backward linkages, the paper shows how economic integration may cause agglomeration, and then discusses the implications of this for real income and for economic policy. Copyright 1996 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 12 (1996)
Issue (Month): 3 (Autumn)
Pages: 52-60

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Handle: RePEc:oup:oxford:v:12:y:1996:i:3:p:52-60

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Cited by:
  1. Octavio Figueiredo & Paulo Guimaraes & Douglas Woodward, 2002. "Modeling industrial location decisions in U.S. counties," NIMA Working Papers 18, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  2. Figueiredo, Octávio & Guimarães, Paulo & Woodward, Douglas, 2010. "Vertical disintegration in Marshallian industrial districts," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 73-78, January.
  3. Marian Beise & Heike Belitz, 1998. "Trends in the Internationalisation of R&D: The German Perspective," Discussion Papers of DIW Berlin 167, DIW Berlin, German Institute for Economic Research.
  4. Gallo Fredrik, 2006. "Increasing Returns, Input-Output Linkages, and Technological Leapfrogging," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-29, August.
  5. Giovanna Segre, 2000. "Foreign Direct Investment and Trade in the EU: Are They Complementary or Substitute in Business Cycles Fluctuations?," CERIS Working Paper 200007, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
  6. Fabrizio Erbetta & Luca Agnello, 2001. "The martingales: theoretical and empirical characteristics," CERIS Working Paper 200107, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
  7. Ferhan Gezici & Berna Keskin, 2005. "The Interaction between Interregional Disparities and Immigration in Turkey," ERSA conference papers ersa05p132, European Regional Science Association.
  8. Kadokawa, Kazuo, 2011. "Applicability of Marshall’s Agglomeration Theory to Indus-trial Clustering in the Japanese Manufacturing Sector: An Exploratory Factor Analysis Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2).
  9. Laura CASI & Laura RESMINI, 2010. "Evidence on the determinants of foreign direct investment: the case of EU regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 93-118, December.
  10. Joe Tharakan & Jean-Philippe Tropeano, 2009. "On The Impact Of Labor Market Matching On Regional Disparities," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 57-80.
  11. José María Mella Márquez & Coro Chasco Yrigoyen, 2004. "Urban growth and territorial dynamics in Spain (1985-2001): A spatial econometrics analysis," Urban/Regional 0411003, EconWPA.
  12. Roy Thurik & David Audretsch & Isabel Grilo, 2012. "Globalization, entrepreneurship and the region," Scales Research Reports H201201, EIM Business and Policy Research.
  13. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers 200605, Regional Research Institute, West Virginia University.
  14. Christer Ljungwall, 2004. "Guangdong: A catalyst for economic growth and exports in hunan province," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 249-265.

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