Agglomeration in a global economy: a survey

Gianmarco Ottaviano and Diego Puga

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This review of recent contributions reveals common conclusions about the effects of integration on location. For high trade costs, the need to supply markets locally encourages firms to spread across different regions. Integration weakens the incentives for self-sufficiency and for intermediate values of trade costs pecuniary externalities induce firms and workers to cluster together, turning location into a self-reinforcing process. However, agglomeration raises the price of immobile local factors and goods, so far low transport costs firms may spread to regions where those prices are lower.

Keywords: economic geography; location; agglomeration; integration; migration; linkages (search for similar items in EconPapers)
JEL-codes: L81 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1997-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

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http://eprints.lse.ac.uk/20324/ Open access version. (application/pdf)

Related works:
Working Paper: Agglomeration in a global Economy: A Survey (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:20324

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