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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.
Der griechische Geograph Strabon, dessen Werk neben dem des Klaudios Ptolemaios die umfangreichste Hinterlassenschaft der antiken Geographie darstellt, als Vorbild für die moderne Geographie – so sah es Friedrich Ratzel (1844-1904), der mit seiner Anthropogeographie versucht hat, die Geographie neu zu bestimmen.