Intermediate Goods and the Spatial Structure of an Economy

Institute of Economic Research, Kyoto University, Sakyo-ku, Kyoto 606-8501, Japan
Regional Science and Urban Economics (Impact Factor: 1.01). 02/2001; 31(1):79-109. DOI: 10.1016/S0166-0462(00)00066-1
Source: RePEc


We develop a monopolistic competition model of spatial economy in which manufacturing requires a large variety of intermediate goods. The economy yields two types of monocentric configurations: an integrated city equilibrium (I-specialized city equilibrium) when transaction costs of intermediate goods are high (low). In the former, both manufacturing and intermediate sectors agglomerate in a single city. In the latter, the city is specialized in the provision of intermediate goods. When the economy is in an integrated city equilibrium, it is in a primacy trap such that population growth alone never leads to the formation of new cities.

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    • "The study further noted that in the long run, those technologies lead to a new production strategy such as the "just-in-time" (JIT) system and it will require a physical proximity (either in an interurban or intra-urban context) between firms and eventually a spatial clustering of economic activities are expected. However, as Fujita and Hamaguchi (2001) noted, firms specifically the buyers of intermediate goods can be more dispersed if they have a better-developed transportation/ communication infrastructure as in the examples of many developed countries. "
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    ABSTRACT: 1 ABSTRACT Information technology is the term used to refer collectively to all forms of communication related technology. An urban area is characterized by a high population density, professional personnel as well as cooperates firms with a high level of civilization and cultural diffusion. The prevailing trend in the purview of information technology, which is often referred to as a revolution, is most observable in the urban areas. In the light of the above, the study examines the effects of information technology on urban land use using Victoria Island and Lagos Island, Lagos as case studies. This study explores the present status of the information technology concept in Nigeria with specific emphasis on the field of urban and regional planning. Theories and models of urban spatial and land use structure were analyzed in the study. Data were also collected through primary source and analysed through the use of descriptive and inferential statistical techniques. Hypotheses result reveales that there is a comparative level of IT in both Lagos Island and Victoria Island. The study reveales the prevalence of informal economic activities, a distortedly congested urban skyline, a changing trend of physical development. It also identified two reasons why IT firms locate in area as some of the effects of IT on urban land use. It however concludes that there exist a variety of communication modes in Lagos Island and Victoria Island which include fax, telephone of various forms, internet services among others. The study recommends the need for IT consideration by urban planners and policy makers in future land use plans of the study areas. It also advocates for proper control of IT related advertisement to enhance their contributions to urban environmental quality in term of aesthetics as well as the provision of planned schemes for the informal sector due. 2 INTRODUCTION The information technology revolution continues to spread like wild fire throughout the world and across all facets of human life. "Place, the community and globalization are a trilogy in the current policy discourse involving information technology (I.T.) and urban form" (Jungyul, Tschangho, Geoffrey, Hewings, 2003). The Nigerian urban centers, especially the Lagos metropolis is not left out of this phenomenon, with its consequential effects on the various land use types of the city. The spatial distribution of urban activities often results from various economic location decisions of an individuals or group of firms. In this sense, location and distribution are just two sides of the same coin. Many possible factors can affect the locational decision-making process of those agents in an urban area. Traditionally, the most popular factor or explanatory variable for urban economic activities is the economic imperative. Since most private firms consider increasing profits in the decision-making process, it is not therefore unusual to consider this as a primary moderating factor. In recent decades, one of the major breakthrough achievements in the world is the development of information technology (IT), especially with the rapid development of computer technology; information technology has had a great influence on society in general as well as on the personal lifestyles of individuals. This development is bound to generate peculiar relationship between information technology and the urban spatial structure. Globalization has brought with it the revolution of information technology. The effects of this on the environment with particular focus on the urban land use structure are numerous. This became so paramount due to the new and unanticipated nature of the information era. In essence, cities where these technologies are mostly visible have yielded to the pressures by the new demands for economic functions. This becomes injurious to the urban system, as the trend was not anticipated in the planning of many cities. The Lagos Metropolis is not an exception.
    Full-text · Article · Jan 2011
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    • "Dafür verwendet jeder Sektor aber nur die eigenen Zwischenprodukte , ein intersektoraler Handel findet also nicht statt. Fujita und Hamaguchi (2001) modellieren ebenfalls Zwischenprodukte im Rahmen der NEG. Sie tun dies jedoch in einem Stadt-ökonomischen Kontext mit eindimensionalem Raum und verwenden neben einem Agrar-und einem Industriesektor einen eigenen Sektor mit Zwischenprodukten. "
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    ABSTRACT: Das Cluster-Modell von Krugman und Venables (1996) erkl�rt im Rahmen der Neuen �konomischen Geographie die Bildung von Agglomerationen bei regional immobilen Arbeitskr�ften. Die resultierenden Gleichgewichte h�ngen von der H�he der Transportkosten ab, die allerdings in beiden Sektoren als gleich hoch unterstellt werden. Der vorliegende Beitrag erweitert dieses Modell um die M�glichkeit sektoral unterschiedlicher Transportkosten. Da eine analytische L�sung nichtm�glich ist, wird eine geeignete Simulationsmethode entwickelt. Anhand von Abbildungen wird dargestellt, welche Gleichgewichte sich bei verschiedenen Werten f�r die beiden Transportkostens�tze ergeben.
    Preview · Article · Jan 2008
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    • "Tourist flows between cities are treated as output and input flows. Since tourist cities are themselves a composite of tourists (Ioanides, 1994), they are treated as both input and output in the production of urban tourism (Fujita, 2001). In other words tourists can be conceptualized as intermediate goods. "
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    ABSTRACT: The promise of NEG applications in urban tourism systems is bright given its newness to the field. The adoption of a CA modeling approach is expected to shed new insights on the field which was previously analytically intractable. Stemming from such insights, with sufficient empirical corroboration, a generalized theory with refinements to current stylized facts would be within reach. The research is expected to contribute to current understanding: i) by bringing to the fore the role of geographical distance in urban tourism system, ii) by advancing a methodology that specifically captures the dynamics of cities from a complex evolving system paradigm, iii) by developing a computational-visual model of systems of tourist cities and iv) by putting forward a generalized theory of urban tourism.
    Full-text · Chapter · Apr 2007
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