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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.
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.
