PubData Leuphana Repository: The Strength of Vertical Linkages

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Ressourcentyp	Arbeitspapier
Titel	The Strength of Vertical Linkages
DOI	10.48548/pubdata-1213
Handle	20.500.14123/1276
Autor*in	Kranich, Jan 131481479
Abstract	This paper discusses the interdependencies that exist between vertically-linked industries in the (Spence-)Dixit-Stiglitz model of monopolistic competition. The main objective is to develop a concept for quantifying the magnitude of sectoral coherence in models of the New Economic Geography. It is motivated by the suggestion, by Venables (1996), that 'strategic industries' be identi®ed in terms of their agglomeration potential. Using a partial-analytic approach, we focus on inter-industrial relations in a closed economy to draw conclusions regarding international trade. We ascertain that two factors have an impact upon the strength of industrial linkages: 1) the monopolistic scope of intermediate suppliers, in terms of (technical) substitution elasticity; and the share in downstream costs for intermediates. Within a simulation study, this paper applies this new theoretical concept to eight basic industries across ten European countries.
Sprache	Englisch
Schlagwörter	Vertical Linkages; Geographie; New Economy
Jahr der Veröffentlichung in PubData	2006
Art der Veröffentlichung	Erstveröffentlichung
Publikationsversion	Veröffentlichte Version
Datum der Erstveröffentlichung	2006-08-21
Entstehungskontext	Forschung
Veröffentlicht durch	Medien- und Informationszentrum, Leuphana Universität Lüneburg
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