FDI Impacts on Industrial Agglomeration: The Case of Java, Indonesia. - Journal of Asia Business Studies

FDI Impacts on Industrial Agglomeration: The Case of Java, Indonesia.

By Journal of Asia Business Studies

  • Release Date - Published: 2009-03-22
  • Book Genre: Finance
  • Author: Journal of Asia Business Studies
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FDI Impacts on Industrial Agglomeration: The Case of Java, Indonesia. Journal of Asia Business Studies read online review & book description:

INTRODUCTION During the last century, geographers, economists, urban planners, business strategists, regional scientists and other social scientists have developed explanations as to why and where economic activities locate (for example Krugman, 1991, Kuncoro, 2000, O'Sullivan, 1996, Porter, 1998). An uneven regional distribution of economic activity within a nation has been a primary concern, and hence, encouraged increasing research in this field. There are three major theories that explain why and where firms tend to concentrate geographically in a certain region: neo-classical, new economic geography and new trade theory. From a theoretical perspective, we expect that some basic agglomeration forces are at work in the region. Each theory has offered some valid hypotheses. yet there is virtually no rigorous empirical work that assesses the relative importance of these three theories.

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