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• W1524435082 abstract "It is a well-known fact that both production and households are not spread evenlyacross space, but tend to concentrate in cities and regions of various sizes anddensities. This clustering is generally beneficial for both producers and households.The concentration of households gives the firms a better opportunity to find anappropriate workforce and at the same time find a market that is large enough fortheir products. The concentration of firms also gives households a better chance infinding suitable jobs. The concentration of firms may even become self-reinforcing.Firms want to locate their business in regions with access to a large market, andaccess to the market tends to be good in regions where a lot of firms locate theirbusiness (Krugman, 1998).The major driving forces behind industrial/household concentration in regions arethe dynamic interaction between factors such as trapped resources e.g. raw-materialsources, market size, transportation and transaction costs, different kinds ofamenities and economies of scale. Economies of scale can in turn be divided intoexternal economies of scale and internal economies of scale. Internal economies ofscale are primarily reaped by individual producers and arise when the productiondemands fixed costs. That is, costs that are not related to the volume of production,e.g. fixed set up costs. External economies of scale, on the other hand, arise due tothe concentration of mutually related firms in the same location. Firms in suchclusters are able to reduce costs through the proximity to each other. When thecluster consists of plants within the same industry, we talk about localisationeconomies, and when the cluster consists of plants from many different industrieswe talk about urbanisation economies (Marshall, 1920; Hoover, 1971 and Mulligan,1984). However, at some point these agglomeration economies can be offset bydiseconomies due to higher land rents, pollution and traffic congestion (Richardson,1995).In this paper we use the concept of functional urban regions to describe thedistribution of central-place industries. A functional urban region can be defined asan economically coherent region with one or more urban centres, surrounded by its(their) hinterland. A functional region is characterised by a substantial amount ofintra-regional contacts (Johansson, 1998). The main reason behind this is that thefunctional urban regions are aggregated so that the majority of people live andwork in the same region. Thus, a functional region has a much higher degree ofintra-regional commuting and contacts than interregional commuting and contacts.The reason for this is that the spatial interaction costs usually are considerablylower within a functional region than between functional regions. The spatialinteraction costs is the sum of the transportation costs and the transaction costs.When analysing why firms locate in a specific functional region two approaches arefrequently used (Karlsson, 1999). On the one hand there is the central-place-system" @default.
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• W1524435082 date "1999-01-01" @default.
• W1524435082 modified "2023-09-22" @default.
• W1524435082 title "Agglomeration, Economies of Scale and Dynamic Specialisation in a Central-Place-System" @default.
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