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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.

Suggested Citation

  • Venables, Anthony J, 1996. "Localization of Industry and Trade Performance," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 52-60, Autumn.
  • Handle: RePEc:oup:oxford:v:12:y:1996:i:3:p:52-60
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    Cited by:

    1. 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.
    2. Ferhan Gezici & Berna Keskin, 2005. "The Interaction between Interregional Disparities and Immigration in Turkey," ERSA conference papers ersa05p132, European Regional Science Association.
    3. Mulatu, Abay, 2016. "On the concept of 'competitiveness' and its usefulness for policy," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 50-62.
    4. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers Working Paper 2006-05, Regional Research Institute, West Virginia University.
    5. 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).
    6. Guimaraes, Paulo & Figueiredo, Octávio & Woodward, Douglas, 2002. "Modeling industrial location decisions in U.S. counties," ERSA conference papers ersa02p060, European Regional Science Association.
    7. Marian Beise & Heike Belitz, 1998. "Trends in the Internationalisation of R&D - the German Perspective," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 67(2), pages 67-85.
    8. 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.
    9. 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.
    10. 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.
    11. repec:rri:wpaper:200605 is not listed on IDEAS
    12. Roy Thurik & David Audretsch & Isabel Grilo, 2012. "Globalization, entrepreneurship and the region," Scales Research Reports H201201, EIM Business and Policy Research.
    13. 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.
    14. M Nsanzabaganwa & PA Black, 2002. "Spokes In The Wheels Of Trade Reform: An African Perspective," South African Journal of Economics, Economic Society of South Africa, vol. 70(5), pages 900-911, June.
    15. 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) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    16. 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.
    17. 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) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.

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