Location of Repository

Multiplant strategy under core-periphery structure

By Kenmei Tsubota

Abstract

A typical implicit assumption on monopolistic competition models for trade and economic geography is that firms can produce and sell only at one place. This paper fallows endogenous determination of the number of plants in a new economic geography model and examine the stable outcomes of organization choice between single-plant and multi-plant in two regions. We explicitly consider the firms' trade-off between larger economies of scale under single plant configuration and the saving in interregional transport costs under multi-plant configuration. We show that organization change arises under decreasing transportation costs and observe several organization configurations under a generalized cost function

Topics: Industrial management, Business enterprises, Multi-plant firms, Transaction costs, New economic geography, 335.33, G World,others, D21 - Firm Behavior, F12 - Models of Trade with Imperfect Competition and Scale Economies, L23 - Organization of Production, R12 - Size and Spatial Distributions of Regional Economic Activity;
Publisher: 日本貿易振興機構アジア経済研究所
Year: 2012
OAI identifier: oai:ir:2344/1138

Suggested articles

Preview

Citations

  1. (1993). A Simple Theory of Multinational Corporations and Trade with a Trade-Off doi
  2. (2003). An Analytically Solvable Coreperiphery Model,” doi
  3. (1997). An Empirical Assessment of the Proximity-concentration Trade-off between Multinational Sales and doi
  4. (1993). Communication Technologies and Spatial Organization of Multi-unit Firms in doi
  5. Eric (2008) “Multinationals: Too Many or Too Few? The Proximity Concentration Trade-off,” doi
  6. (2007). Foreign Outsourcing, Exporting, and FDI: A Productivity Comparison at the Firm Level,” doi
  7. (2006). Globalization and the Evloution of the Supply Chain: Who Gains and Who Loses?” doi
  8. (1991). Increasing Returns and Economic Geography,” doi
  9. (2005). Market Potential, Increasing Returns and Geographic Concentration,” doi
  10. (1998). Multinational Firms and the New Trade Theory,” doi
  11. (1984). Multinationals, Multi-plant Economies, and the Gains from Trade,” doi
  12. (2005). On the Evolution of the Spatial Economy with Multi-unit/Multi-plant Firms: doi
  13. (1999). Spatial Economy: doi
  14. (2003). The Complex Integration Strategies of Multinationals and Cross Country Dependencies in the doi
  15. (2004). The Spatial Distribution of Economic Activities in the European Union,” doi
  16. (2001). Trade and Location with Horizontal and Vertical Multi-region Firms,” doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.