Timeliness, trade and agglomeration
By: James Harrigan, Anthony J. Venables.
Contributors: Venables, Anthony.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10404; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10404.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "An important element of the cost of distance is time taken in delivering final and intermediate goods.  We argue that time costs are qualitatively different from direct monetary costs such as freight charges.  The difference arises because of uncertainty.  Unsynchronised deliveries can disrupt production, and delivery time can force producers to order components before demand and cost uncertainties are resolved.  Using several related models we show that this generates hitherto unexplored incentives for clustering.  If final assembly takes place in two locations and component production has increasing returns to scale, then component production will tend to cluster around just one of the assembly plants"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/13/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.