Agglomeration, dispersion, and the pioneer firm

Article Abstract:

A model is developed to examine industry location in the presence of external economies of scale. It characterizes industry location as a process of successive stages of agglomeration, dispersion and reagglomeration. Agglomeration, a natural outcome of external economies, is proposed to be the initial phase in the establishment of a regional production network. Because it bolsters wages in the industry center, companies are forced to transfer their non-external operations to outlying sites that offer lower wages, where they invest in communication and distribution facilities. This creates an opportunity for pioneer firms to offer intermediation services between the industry center and the new locations. A regional production hierarchy is thus created consisting of an industry center served by high-volume, pioneer-supported manufacturing locations, and by low-volume production sites without pioneer firms. This model is applied to the Mexican garment industry.

APPAREL AND OTHER TEXTILE PRODUCTS, Apparel & Related Products, Apparel Manufacturing, Clothing industry, Location, Metropolitan areas, Industrial locations, Industrial location, Production (Economics)

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U.S.-Mexico integration and regional economies: evidence from border-city pairs

Article Abstract:

This article examines the integration between the United States and Mexico and its impact on economic activity at the border regions. The author, focusing on export manufacturing in Mexican border cities, concludes the growth of export manufacturing accounts for substantial employment growth in United States border cities.

Mexico, Employment, Economic development, International economic relations, United States foreign relations, Mexican foreign relations

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On the endogenous allocation of decision powers in federal structures

Article Abstract:

A political-economy explanation of the degree of centralization in economic policy making is provided. To determine which policies are to be centralized, regions select representatives who then negotiate the degree of centralization and the regional cost shares of centrally decided policies.

Economic Programs, Administration of Economic Programs, Federalism, Economic policy, Political aspects, Government centralization

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