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Localization of Industry and Trade Performance

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  • Venables, Anthony J

Abstract

This paper reviews recent literature on the spatial agglomeration of economic activity. This literature provides new ways of thinking about the determinants of the location of production, of trade flows, and of international income differences. Agglomeration of activity arises out of the tension between product-market and factor-market competition - which encourage a dispersed pattern of location - and externalities between firms (technological or pecuniary) which promote agglomeration. Using a framework in which intermediate goods create forward and backward linkages, the paper shows how economic integration may cause agglomeration, and then discusses the implications of this for real income and for economic policy. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Venables, Anthony J, 1996. "Localization of Industry and Trade Performance," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(3), pages 52-60, Autumn.
    • Handle: RePEc:oup:oxford:v:12:y:1996:i:3:p:52-60
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    Cited by:

    1. Paul Cheshire, 1999. "Cities in Competition: Articulating the Gains from Integration," Urban Studies, Urban Studies Journal Limited, vol. 36(5-6), pages 843-864, May.
    2. Agnes Kügler & Andreas Reinstaller & Klaus S. Friesenbichler, 2023. "Can value chain integration explain the diverging economic performance within the EU?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 25-47, March.
    3. Marian Beise & Heike Belitz, 1998. "Trends in the Internationalisation of R&D - the German Perspective," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 67(2), pages 67-85.
    4. Joe Tharakan & Jean‐Philippe Tropeano, 2009. "On The Impact Of Labor Market Matching On Regional Disparities," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 57-80, February.
    5. Jean-François Brun & Mary-Françoise Renard, 2001. "Commerce extérieur et spécialisations régionales en Chine," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 297-310.
    6. repec:rri:wpaper:200605 is not listed on IDEAS
    7. Lixia Jin & Changjian Wang & Hongou Zhang & Yuyao Ye & Zhiwei Du & Yuling Zhang, 2019. "Evolution and Mechanism of the “Core–Periphery” Relationship: Micro-Evidence from Cross-Regional Industrial Production Organization in a Fast-Developing Region in China," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    8. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers Working Paper 2006-05, Regional Research Institute, West Virginia University.
    9. Frank Giarratani & Gene Gruver & Randall Jackson, 2007. "Clusters, Agglomeration, and Economic Development Potential: Empirical Evidence Based on the Advent of Slab Casting by U.S. Steel Minimills," Economic Development Quarterly, , vol. 21(2), pages 148-164, May.
    10. Guimaraes, Paulo & Figueiredo, Octávio & Woodward, Douglas, 2002. "Modeling industrial location decisions in U.S. counties," ERSA conference papers ersa02p060, European Regional Science Association.
    11. Gallo Fredrik, 2006. "Increasing Returns, Input-Output Linkages, and Technological Leapfrogging," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-29, August.
    12. Roy Thurik & David Audretsch & Isabel Grilo, 2012. "Globalization, entrepreneurship and the region," Scales Research Reports H201201, EIM Business and Policy Research.
    13. José María Mella Márquez & Coro Chasco Yrigoyen, 2004. "Urban growth and territorial dynamics in Spain (1985-2001): A spatial econometrics analysis," Urban/Regional 0411003, University Library of Munich, Germany.
    14. Giovanna Segre, 2000. "Foreign Direct Investment and Trade in the EU: Are They Complementary or Substitute in Business Cycles Fluctuations?," CERIS Working Paper 200007, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    15. Kadokawa, Kazuo, 2011. "Applicability of Marshall’s Agglomeration Theory to Indus-trial Clustering in the Japanese Manufacturing Sector: An Exploratory Factor Analysis Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2), pages 1-18.
    16. Figueiredo, Octávio & Guimarães, Paulo & Woodward, Douglas, 2010. "Vertical disintegration in Marshallian industrial districts," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 73-78, January.
    17. M Nsanzabaganwa & PA Black, 2002. "Spokes In The Wheels Of Trade Reform: An African Perspective," South African Journal of Economics, Economic Society of South Africa, vol. 70(5), pages 900-911, June.
    18. Ferhan Gezici & Berna Keskin, 2005. "The Interaction between Interregional Disparities and Immigration in Turkey," ERSA conference papers ersa05p132, European Regional Science Association.
    19. Mulatu, Abay, 2016. "On the concept of 'competitiveness' and its usefulness for policy," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 50-62.
    20. Christer Ljungwall, 2004. "Guangdong: A catalyst for economic growth and exports in hunan province," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 249-265.
    21. Laura CASI & Laura RESMINI, 2010. "Evidence on the determinants of foreign direct investment: the case of EU regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 93-118, December.
    22. Baris, Kristina & Crisostomo, Ma. Charmaine & Garay, Krizia Anne & Jabagat, Christian Regie & Mariasingham, Mahinthan & Mores, Elyssa Mariel, 2022. "Measuring Localization in the Age of Economic Globalization," ADB Economics Working Paper Series 647, Asian Development Bank.
    23. Fabrizio Erbetta & Luca Agnello, 2001. "The martingales: theoretical and empirical characteristics," CERIS Working Paper 200107, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.

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