Vertical Linkages and Multinational Plant Size
This paper deals with the location of input supply in a two country spatial economy. A duopoly supplies intermediate goods to a perfectly competitive consumer good industry that operates with a quadratic production function inspired in PENG, THISSE and WANG (2006). Since the consumer good is non-tradable, the downstream industry locates in both countries and can be viewed as made by a set of multinational firms. On the one hand joint location of the upstream firms is caused by a localization economy and by the intensity of the demand addressed to the industry. On the other hand production and transport costs of the input lead to dispersed locations by the upstream firms. If the input suppliers agglomerate, the neighboring downstream plant operates with a larger size that the distant one. Key words: Vertically-linked industries; Location; Oligopoly; Transport Costs
|Date of creation:||Sep 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL|
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC
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.:
- Belleflamme, Paul & Picard, Pierre & Thisse, Jacques-Francois, 2000.
"An Economic Theory of Regional Clusters,"
Journal of Urban Economics,
Elsevier, vol. 48(1), pages 158-184, July.
- Peng, Shin-Kun & Thisse, Jacques-François & Wang, Ping, 2004.
"Economic Integration and Agglomeration in a Middle Product Economy,"
CEPR Discussion Papers
4441, C.E.P.R. Discussion Papers.
- Peng, Shin-Kun & Thisse, Jacques-Francois & Wang, Ping, 2006. "Economic integration and agglomeration in a middle product economy," Journal of Economic Theory, Elsevier, vol. 131(1), pages 1-25, November.
- PENG, Shin-Kun & THISSE, Jacques-François & WANG, Ping, 2004. "Economic integration and agglomeration in a middle product economy," CORE Discussion Papers 2004015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- PENG, Shin-Kun & THISSE, Jacques-Françiois & WANG, Ping, . "Economic integration and agglomeration in a middle product economy," CORE Discussion Papers RP 1878, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Shin-Kun Peng & Jacques-François Thisse & Ping Wang, 2005. "Economic Integration and Agglomeration in a Middle Product Economy," IEAS Working Paper : academic research 05-A006, Institute of Economics, Academia Sinica, Taipei, Taiwan.
- Venables, Anthony J, 1993.
"Equilibrium Locations of Vertically Linked Industries,"
CEPR Discussion Papers
802, C.E.P.R. Discussion Papers.
- Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
- Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
- Markusen, James R. & Venables, Anthony J., 1999.
"Foreign direct investment as a catalyst for industrial development,"
European Economic Review,
Elsevier, vol. 43(2), pages 335-356, February.
- James R. Markusen & Anthony J. Venables, 1997. "Foreign Direct Investment as a Catalyst for Industrial Development," NBER Working Papers 6241, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ise:isegwp:wp302009. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vitor Escaria)
If references are entirely missing, you can add them using this form.