A geographical theory of (De)industrialization

José Pontes and Armando Garcia Pires

Structural Change and Economic Dynamics, 2021, vol. 59, issue C, 567-574

Abstract: In the model of agricultural land use and rent of Von Thunen (1826), manufacturing decentralization is viewed as the refining (or “distilling”) of an agricultural commodity near the cultivation site, which substitutes for its transport to an industrial mill located in the Town. As Friedrich List (1841) added, this substitution is economically feasible only if the savings in transport cost following from in site refining cover the increase in fixed costs associated with a second industrial plant. We update this approach aiming to rationalize some stylized trends of manufacture relocation nowadays, which are jointly labeled as “deindustrialization”.

Keywords: Deindustrialization; Industrialization of Agrarian economies; Von Thünen; Friedrich list (search for similar items in EconPapers)
JEL-codes: B20 O12 O14 R12 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:59:y:2021:i:c:p:567-574

DOI: 10.1016/j.strueco.2021.10.010

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