Abstract
ABSTRACT The New Economic Geography (NEG)’s agglomerative forces strongly determined the location of firms, in spite of policy intervention blatantly activist intended to reverberate the geography of production (during the communist regime). Recent models of geography and trade recognize a bijective interaction between NEG forces and comparative advantages, they fully explain productive specialization. Our interpretation of the Czech manufacturing is in accordance with the NEG and its recent integration with the comparative advantages stream. In the panel data float up some invariant characteristics enhancing the attractiveness of traditional industrialized territories. The estimates embody the population density and gravitational and agglomeration forces. The time-invariant characteristics are present in the most industrial regions, influencing the localization of manufacturing activity in these spots. In spite of the forceful influence of path dependence, the very manufacturing cores underwent a process of restructuration, adapting the old-fashioned specialization pattern toward a more coherent production tailored to local assets, endowments and technologies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.