Fandom

Urbepedia

Localization economies

60pages on
this wiki
Add New Page
Talk0 Share

A firm that benefits from localization economies will be pulled toward other firms in the industry. Why? to share resources such as inputs, knowledge spillovers, advertising firms, firms supplying intermediate inputs that require face-to-face contact, or labor pool. Firms in the cluster indirectly exploit the scale economies in producing the interpediate input, and can tap the input suppliers at top speed (O'Sullivan 2003, Ch. 4)[1].

ReferencesEdit

  1. O'Sullivan, Arthur. (2003) Urban economics (McGraw-Hill/Irwin, Boston)

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.