On the evolution of the spatial economy with multi-unit · multi-plant firms: the impact of IT development |
| |
Authors: | Masahisa Fujita Toshitaka Gokan |
| |
Institution: | (1) Institute of Economic Research, Kyoto University, Yoshida-Honmachi, 606-8501 Sakyo-ku, Kyoto, Japan;(2) Graduate School of Economics, Kyoto University, Yoshida-Honmachi, 606-8501 Sakyo-ku, Kyoto, Japan |
| |
Abstract: | This paper examines how the decline of communication costs between management and production facilities within firms and the decrease in trade costs of manufactured goods affect the spatial organization of a two-region economy with multi-unit·multi-plant firms. The development of information technology decreases the costs of communication and trade costs. Thus, the fragmentation of firms is promoted. Our result indicates that, with decreasing communication costs, firms producing low trade-cost goods (such as electronics products) tend to concentrate their manufacturing plants in low wage countries. In contrast, firms producing high trade-cost products (such as automobiles) tend to have multiple plants serving to segmented markets, even in the absence of wage differentials.Received: November 2004, Accepted: March 2005, JEL Classification:
F12, L13, R13Masahisa Fujita: Correspondence toWe are very grateful to J. Vernon Henderson, J. Pedro Pontes and Koumei Sasaki for helpful comments. |
| |
Keywords: | Agglomeration Headquarters Plants Supply chain Re-location Monopolistic competition Information technologies |
本文献已被 SpringerLink 等数据库收录! |
|