TY  - GEN
A1  - Kranich, Jan
T1  - The Strength of Vertical Linkages
N2  - 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.
T3  - University of Lüneburg Working paper series in economics - 20 
KW  - Geographie
KW  - New Economy
KW  - New Economic Geography
KW  - Vertical Linkages
Y1  - 2006
UR  - http://pub-data.leuphana.de/frontdoor/index/index/docId/428
UR  - https://nbn-resolving.org/urn:nbn:de:gbv:luen4-opus4-4286
ER  -