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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2704

Title: Economies of Scope, Agglomeration and Location of the Multinational Firm
Authors: Pontes, José Pedro
Parr, John B.
Keywords: Economies of scope
Economies of agglomeration
Multiplant firms
Multinational firms
Issue Date: 2004
Publisher: ISEG – Departamento de Economia
Citation: Pontes, José Pedro e John B. Parr. 2004. "Economies of Scope, Agglomeration and Location of the Multinational Firm". Instituto Superior de Economia e Gestão - DE Working papers nº 4-2004/DE/UECE
Series/Report no.: DE Working papers;nº 4-2004/DE/UECE
Abstract: A classification of the locational patterns of firms (with economies of scope present) is outlined, in order to cast light on the location of the multiplant, multinational firm. This is driven by three forces: economies of scope that follow from the co-location of different activities; transportation costs of the final good; and factor mobility costs. It is concluded that the single-plant firm prevails when spatial economies of scope are strong in relation to either transportation or mobility costs. The vertical (horizontal) multiplant firm emerges when mobility costs of factors (transportation costs on the final good) are high. These two kinds of spatial costs, which are mutually exclusive, favor the formation of multinational firms.
URI: http://hdl.handle.net/10400.5/2704
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=26405
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

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