?This Paper studies the size and number of industrial clusters that will arise in a multi-country world in which, because of increasing returns to scale, one sector has a propensity to cluster. It compares the equilibrium with the world welfare maximum, showing that the equilibrium will generally have clusters that are too small, while there are possibly too many countries with a cluster. Allowing national governments to subsidize will move the equilibrium to the world welfare maximum, so the...Expand abstract
- Publication date:
- Local pid:
- Copyright date:
Industrial Clusters: Equilibrium, Welfare and Policy.
Views and Downloads
If you are the owner of this record, you can report an update to it here: Report update to this record