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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2638

Title: Agglomeration and comparative advantage in vertically-related firms
Authors: Pontes, José Pedro
Keywords: Location
Intermediate goods
Agglomeration
Comparative advantage
Issue Date: 2006
Publisher: ISEG – Departamento de Economia
Citation: Pontes, José Pedro. 2006. "Agglomeration and comparative advantage in vertically-related firms". Instituto Superior de Economia e Gestão - DE Working papers nº 17-2006/DE/UECE
Series/Report no.: DE Working papers;nº 17-2006/DE/UECE
Abstract: This paper models, in game-theoretical terms, the location of two vertically-linked monopolistic firms in a spatial economy formed by a large, high labor cost country and a relatively small, low labor cost country. It is found that the decrease in transport costs shifts firms towards the low production cost country. This process takes two different forms: in labor-intensive industries it leads to spatial fragmentation; in industries with strong input-output relations, agglomerations are conserved, although they shift toward the low labor cost country.
URI: http://hdl.handle.net/10400.5/2638
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=26453
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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