On Wed, 2008-01-30 at 11:39 -0800, Wojtek Sokolowski wrote:
> [WS:] I think that path dependence theory, which has
> been used explain geographic concentration of industry
> can shed some light here (cf. Krugman's piece on the
> subject which I cannot quote at the moment because I
> am still traveling.) The theory claims, contrary to
> the neclassical "wisdom," that new arrivals, be it
> industry or immigrants, take advantage of the presence
> of already present industries or immigrants, who lower
> their transaction costs. In case of industry, it is
> taking advantage of skilled workforce already working
> in the existing industry, trasportation infrastructure
> etc. In case of immigrants, it is social networks to
> immigrants already there that make the transaction
> costs of arrival to the new place lower.
==============
Do the names Alfred Marshall and Allyn Young ring a bell, perhaps............????????????
Sheesh,
Ian