Please use this identifier to cite or link to this item:
https://doi.org/10.48548/pubdata-1213
| Resource type | Working Paper |
| Title(s) | The Strength of Vertical Linkages |
| DOI | 10.48548/pubdata-1213 |
| Handle | 20.500.14123/1276 |
| Creator | 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. |
| Language | English |
| Keywords | Vertical Linkages; Geographie; New Economy |
| Year of publication in PubData | 2006 |
| Publishing type | First publication |
| Publication version | Published version |
| Date issued | 2006-08-21 |
| Creation context | Research |
| Published by | Medien- und Informationszentrum, Leuphana Universität Lüneburg |
| Related resources |
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|---|---|---|---|
wp_20_Upload.pdf License: Nutzung nach Urheberrecht open-access | 582.81 kB | Adobe PDF | View/Open |
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