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Location, agglomeration and infrastructure

In: Fifty Years of Regional Science

Author

Listed:
  • Philip McCann

    (University of Reading)

  • Daniel Shefer

    (Technion-Israel Institute of Technology)

Abstract

In this article we discuss the relationships between transportation infrastructure, firm location, agglomeration and regional development. We will argue that the spatial transaction costs faced by modern firms have changed over recent decades, and that this has changed the ways in which transportation infrastructure contributes to form location behaviour and regional economic development. Therefore, in order to analyse these issues, it is necessary to consider the spatial transaction costs faced by modern firms and to investigate the conditions under which reductions in these costs due to infrastructure improvements will allow firms to move. These complex relationships are seen to be mediated via different geography-firm-organisation structures and consideration of these is essential for any realistic evaluation of the role of transportation infrastructure.

Suggested Citation

  • Philip McCann & Daniel Shefer, 2004. "Location, agglomeration and infrastructure," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 177-196, Springer.
    • Handle: RePEc:spr:adspcp:978-3-662-07223-3_8
    DOI: 10.1007/978-3-662-07223-3_8
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    More about this item

    Keywords

    Location theory; agglomeration; infrastructure; transaction costs;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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