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| Author: | Belleflamme, P. |
| Title: | An economic theory of regional clusters |
| Journal: | Journal of Urban Economics
2000 : JUL, V0L. 48:1, p. 158-184 |
| Index terms: | ECONOMICS CLUSTER ANALYSIS TRADE |
| Language: | eng |
| Abstract: | This paper investigates the impact of localization economies on firms; locations. It is known that such external effects lead to substantial cost reductions when firms are located together. However, when they are agglomerated, firms also face the prospects of tough price competition whose intensity can be relaxed through product differentiation. In addition, their access to isolated markets varies with the level of transport costs. |
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