Comparing the effects of mutualism and competition on industrial districts

Industrial districts are made up of numerous firms or industries interacting in myriad ways. We create and study a model of trade and service interactions in an industrial district, and then extend it to investigate the effect of both positive (mutualistic) and negative (competitive) non-trade interactions on the behaviour of two different types of industrial district—Marshallian and hub-and-spoke. In particular we study whether the structure of the district, or the positioning of the relationships, makes a difference to the outcome for the district as a whole.

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