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Agglomeration in a global economy: a survey

Ottaviano, Gianmarco I. P. and Puga, Diego (1997) Agglomeration in a global economy: a survey. CEPDP (356). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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This review of recent contributions reveals common conclusions about the effects of integration on location. For high trade costs, the need to supply markets locally encourages firms to spread across different regions. Integration weakens the incentives for self-sufficiency and for intermediate values of trade costs pecuniary externalities induce firms and workers to cluster together, turning location into a self-reinforcing process. However, agglomeration raises the price of immobile local factors and goods, so far low transport costs firms may spread to regions where those prices are lower.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 1997 the authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HF Commerce
Date Deposited: 01 Aug 2008 13:44
Last Modified: 26 Apr 2021 11:47

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