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Transaction Costs, Agglomeration Economies, and Industrial Location: A Comment

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  • PIET DE VRIES
  • GERT‐JAN HOSPERS

Abstract

ABSTRACT This article comments on a recent contribution by Wood and Parr to Growth and Change. Wood and Parr apply the institutional–economic approach to agglomeration issues. After a sketch of the conceptual background, the present article discusses some concepts introduced by Wood and Parr, such as “transaction space” and the alleged relationship between space homogeneity and transaction cost. This is followed by critical remarks from the very same institutional–economic point of view. In the article, the conclusion is drawn that some limitations should be taken into account when applying the institutional perspective to agglomeration economics.

Suggested Citation

  • Piet De Vries & Gert‐Jan Hospers, 2006. "Transaction Costs, Agglomeration Economies, and Industrial Location: A Comment," Growth and Change, Wiley Blackwell, vol. 37(2), pages 307-314, June.
    • Handle: RePEc:bla:growch:v:37:y:2006:i:2:p:307-314
    DOI: 10.1111/j.1468-2257.2006.00319.x
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    References listed on IDEAS

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    1. Avner Greif & Andres Rodriguez-Clare, 1995. "A Transactions-Cost Theory of Agglomeration Economies," Working Papers 95003, Stanford University, Department of Economics.
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    Cited by:

    1. Vitaly L. Tambovtsev, 2022. "Clusters: Coordination, inter-firm relationships and competitive advantages," Upravlenets, Ural State University of Economics, vol. 13(1), pages 20-36, March.

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