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Local Networks and Regional Development: Features and Perspectives

Rosella Nicolini

No 2000013, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The aim of this paper is to draw attention to the role of local industrial networks in a regional development process. We build a one-region model in which we investigate the conditions that make local networks arise, distinguishing between spontaneous and sustained networks. Accounting for the difference between incomplete and full coordinated agreements among firms, we establish the values of parameters that allow for the rise of each type of network. Finally, we argue on the positive effects that the rise of local networks yields to the regional internal product, making of them a reliable support for the regional economic take-off.

Keywords: Industrial Networks; Local Welfare; Regional Development; Scale Economies (search for similar items in EconPapers)
JEL-codes: E23 L16 R11 R13 (search for similar items in EconPapers)
Pages: 22
Date: 2000-06-01
New Economics Papers: this item is included in nep-ent and nep-tid
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