Location, agglomeration and infrastructure

Philip McCann () and Daniel Shefer ()

Economics of Governance, 2003, vol. 83, issue 1, 177-196

Abstract: In this article we discuss the relationships between transportation infrastructure, firm location, agglomeration and regional development. We will argue that the spatial transaction costs faced by modern firms have changed over recent decades, and that this has changed the ways in which transportation infrastructure contributes to form location behaviour and regional economic development. Therefore, in order to analyse these issues, it is necessary to consider the spatial transaction costs faced by modern firms and to investigate the conditions under which reductions in these costs due to infrastructure improvements will allow firms to move. These complex relationships are seen to be mediated via different geography-firm-organisation structures and consideration of these is essential for any realistic evaluation of the role of transportation infrastructure. Copyright Springer-Verlag Berlin/Heidelberg 2003

Keywords: Location theory; agglomeration; infrastructure; transaction costs (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:spr:ecogov:v:83:y:2003:i:1:p:177-196

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DOI: 10.1007/s10110-003-0182-y

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