Arbeitspapier
Agglomeration, vertical specialization, and the strength of industrial linkages
This paper picks up the seminal model of Venables (1996) and provides a quantifying concept for the sectoral coherence in vertical-linkage models of the New Economic Geography. Based upon an alternative approach to solve the model and to determine critical trade cost values, this paper focuses on the interdependencies between agglomeration, specialization and the strength of vertical linkages. A central concern is the idea of an 'industrial base' which is attracting linked industries but is persistent to relocation. As a main finding, the intermediate cost share and substitution elasticity basically determine the strength of linkages. Thus, these parameters affect how strong the industrial base responds to changes in trade costs, relative wages and market size.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper Series in Economics ; No. 98
- Classification
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Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- Subject
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New economic geography
vertical linkages
- Event
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Geistige Schöpfung
- (who)
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Kranich, Jan
- Event
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Veröffentlichung
- (who)
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Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
- (where)
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Lüneburg
- (when)
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2008
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kranich, Jan
- Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
Time of origin
- 2008
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