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Location, agglomeration and infrastructure
Author(s) -
McCann Philip,
Shefer Daniel
Publication year - 2004
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1007/s10110-003-0182-y
Subject(s) - economies of agglomeration , transaction cost , transportation infrastructure , order (exchange) , business , economic geography , industrial organization , database transaction , urban infrastructure , transport infrastructure , economics , transport engineering , economic growth , urban planning , finance , computer science , civil engineering , engineering , programming language
. In this article we discuss the relationships between transportation infrastructure, firm location, agglomeration and regional development. We will argue that the spatial transaction costs faced by modern firms have changed over recent decades, and that this has changed the ways in which transportation infrastructure contributes to form location behaviour and regional economic development. Therefore, in order to analyse these issues, it is necessary to consider the spatial transaction costs faced by modern firms and to investigate the conditions under which reductions in these costs due to infrastructure improvements will allow firms to move. These complex relationships are seen to be mediated via different geography‐firm‐organisation structures and consideration of these is essential for any realistic evaluation of the role of transportation infrastructure.