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Agglomeration Economies And Location Decisionmaking Of Firms In Location-Triangle Approach


  • Daisuke Nakamura

    () (The International Centre for the Study of East Asian Development (ICSEAD), Japan)


The location-triangle framework, which was originally established by Alfred Weber, has been expanded in various ways and generalized as the Weber-Moses location-triangle model. However, several essential elements, in particular, regarding agglomeration economies have been excluded from the model framework. This may cause a potential difficulty to connect location-triangle approach with recent more advanced spatial economic analysis. In this paper, an alternative hypothetical model is introduced to the location triangle framework with the notions of agglomeration economies and corresponding transportation costs. The alternative model framework enables the location-triangle model to deal with investigating modern complex industrial organizations. Further avenues of extension are also discussed.

Suggested Citation

  • Daisuke Nakamura, 2010. "Agglomeration Economies And Location Decisionmaking Of Firms In Location-Triangle Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-54, December.
  • Handle: RePEc:hrs:journl:v:ii:y:2010:i:2:p:47-54

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    References listed on IDEAS

    1. Aakvik, Arild & Dahl, Svenn-Åge, 2004. "Transitions to Employment from Labour Market Enterprises in Norway," Working Papers in Economics 07/04, University of Bergen, Department of Economics.
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    5. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute for the Study of Labor (IZA).
    6. Laura A. Schintler & Sean P. Gorman & Aura Reggiani & Roberto Patuelli & Andy Gillespie & Peter Nijkamp & Jonathan Rutherford, 2004. "Complex Network Phenomena in Telecommunication Systems," Tinbergen Institute Discussion Papers 04-118/3, Tinbergen Institute.
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    More about this item


    Location-triangle model; agglomeration economies; transportation costs; firm location;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy


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