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Local Networks and Regional Development: Features and Perspectives

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  • Nicolini, Rosella

    (UNIVERSITE 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.

Suggested Citation

  • Nicolini, Rosella, 2000. "Local Networks and Regional Development: Features and Perspectives," LIDAM Discussion Papers IRES 2000013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2000013
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    References listed on IDEAS

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    1. Ian Gordona & Paul Cheshire, 2001. "Locational Advantage and Lessons for Territorial Competition in Europe," Advances in Spatial Science, in: Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), Theories of Endogenous Regional Growth, chapter 7, pages 137-149, Springer.
    2. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
    3. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    4. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 347-385.
    5. Schmitz, Hubert & Musyck, Bernard, 1994. "Industrial districts in Europe: Policy lessons for developing countries?," World Development, Elsevier, vol. 22(6), pages 889-910, June.
    6. Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), 2001. "Theories of Endogenous Regional Growth," Advances in Spatial Science, Springer, number 978-3-642-59570-7.
    7. Soubeyran, Antoine & Thisse, Jacques-Francois, 1999. "Learning-by-Doing and the Development of Industrial Districts," Journal of Urban Economics, Elsevier, vol. 45(1), pages 156-176, January.
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    Cited by:

    1. Rosella Nicolini, 2008. "Agglomeration and inequality across space: What can we learn from the European experience?," Working Papers wpdea0809, Department of Applied Economics at Universitat Autonoma of Barcelona.

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    More about this item

    Keywords

    Industrial Networks; Local Welfare; Regional Development; Scale Economies;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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