Cities, connections and cronyism
Recent developments in the global system of cities present a curious paradox. With the cost of communications declining almost to zero and substantial, though less dramatic reductions in transport costs, there is now little technical requirement for most kinds of production to be undertaken in any particular location, or for elements of production chains to be located close to each other. This fact has had dramatic consequences for the organisation of manufacturing industry. Simple production chains involving the import of raw materials, usually from developing countries, for processing in a specialised centre, have been replaced by far more complex structures. Yet, in important respects, the dominance of a small number of Òglobal citiesÓ has never been greater. In this paper, it is argued that the dominance of global cities reflects a desire for clustering on the part of finance sector professionals and corporate executives. It seems likely that such clustering provides private benefits by enhancing the value of personal contacts, but reduces the efficiency and profitability of the corporate sector.
|Date of creation:||Mar 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 7 3365 6601
Fax: +61 7 3365 6601
Web page: http://www.uq.edu.au/rsmg/index.htmEmail:
More information through EDIRC
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.:
- Ghosh Chinmoy & Rodriguez Mauricio & Sirmans C. F., 1995. "Gains from Corporate Headquarters Relocations: Evidence from the Stock Market," Journal of Urban Economics, Elsevier, vol. 38(3), pages 291-311, November.
- Gavin A. Wood & John B. Parr, 2005. "Transaction Costs, Agglomeration Economies, and Industrial Location," Growth and Change, Wiley Blackwell, vol. 36(1), pages 1-15.
- Michael Storper & Anthony J. Venables, 2003.
"Buzz: face-to-face contact and the urban economy,"
LSE Research Online Documents on Economics
20008, London School of Economics and Political Science, LSE Library.
When requesting a correction, please mention this item's handle: RePEc:rsm:pubpol:p06_3. 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: (David Adamson)
If references are entirely missing, you can add them using this form.