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Author:Venables, A.
Title:Equilibrium locations of vertically linked industries
Journal:International Economic Review
1996 : MAY, VOL. 37:2, p. 341-360
Index terms:INTERNATIONAL
Language:eng
Abstract:There are two imperfectly competitive industries, upstream and downstream, and two locations. Where do the industries locate? Production occurs in both locations when transport costs are high (industry must be close to consumers) or low (factor prices determine location). Imperfect competition and transport costs create forward and backward linkages between upstream and downstream industries, and at intermediate transport costs these linkages determine location. There are multiple equilibria, some with agglomeration in a single location.
SCIMA record nr: 149974
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