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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/1851

Title: Vertical linkages and multinational plant size
Authors: Pontes, José Pedro
Keywords: Vertically-linked industries
Location
Oligopoly
Transport costs
Issue Date: 21-Apr-2009
Citation: Pontes, José Pedro. 2009. "Vertical linkages and multinational plant size". Instituto Superior de Economia e Gestão - DE working papers nº 30-2009/DE/UECE.
Series/Report no.: DE Working papers; nº 30/2009/DE/UECE
Abstract: This paper deals with the location of input supply in a two country spatial economy. A duopoly supplies intermediate goods to a perfectly competitive consumer good industry that operates with a quadratic production function inspired in PENG, THISSE and WANG (2006). Since the consumer good is non-tradable, the downstream industry locates in both countries and can be viewed as made by a set of multinational firms. On the one hand joint location of the upstream firms is caused by a localization economy and by the intensity of the demand addressed to the industry. On the other hand production and transport costs of the input lead to dispersed locations by the upstream firms. If the input suppliers agglomerate, the neighboring downstream plant operates with a larger size that the distant one.
URI: http://hdl.handle.net/10400.5/1851
ISSN: 0874-4548
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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