Coordination Costs and the Geography of Production. Issue 4 (1st October 2016)

• Record Type: Journal Article
• Authors: Noblet, Sandrine; Belgodere, Antoine
• Is Part Of: Spatial economic analysis. Volume 11:Issue 4(2016)
• Page Start: 392
• Page End: 412
• Publication Date: 2016-10-01
• Subjects: New Economic Geography -- coordination costs -- complexity; F12 -- F15 -- R12 -- O18; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2016.1189088
• Languages: English
• ISSNs: 1742-1772

Abstract

Abstract: In a model à la Venables of 1996, we distinguish two kinds of intermediate goods: complex goods that entail endogenous coordination costs, and simple goods that do not. Coordination costs depend on geographical distance and the number of intermediate goods used in the production process. In the final stage of integration, there are two possible spatial configurations: (1) a symmetric configuration and (2) a partial core–periphery equilibrium, comprised of a core region that produces the final and complex intermediate goods, and a periphery that produces simple intermediate goods. We discuss some policy implications of this multiple-equilibria outcome. Les coûts de coordination et la géographie de la production