The (strong) interdependence between intermediate producer services' attributes and manufacturing location

Luis Lanaspa, Fernando Sanz-Gracia and María Vera-Cabello

Economic Modelling, 2016, vol. 57, issue C, 1-12

Abstract: The empirical evidence shows that a high degree of co-location exists between intermediate producer services and manufacturers. This paper develops a theoretical model based on the Footloose Entrepreneur Model of the New Economic Geography in which intermediate producer services play an essential role in characterizing the industrial landscape. Our results show that the concentration of manufacturing is favored when the service sector has high price elasticity for any variety and is a very efficient sector in production and when the mobile-fixed factor, skilled workers, is important in the production of manufacturing. In a nutshell, to promote economic activity, the industrial policy and service sector policy should be coordinated.

Keywords: Intermediate producer services; Manufacturing concentration; Colocation (search for similar items in EconPapers)
JEL-codes: F12 R12 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999316301018
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:57:y:2016:i:c:p:1-12

DOI: 10.1016/j.econmod.2016.04.010

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().