The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Antonio Ciccone
Reference work entry


Economic activities in different industries are linked to each other through aggregate income (horizontal linkages) and input–output relationships (vertical linkages). Could such linkages give rise to vicious circles of underdevelopment or virtuous circles of development when there are increasing returns to scale at the firm level?


Cost linkages Demand linkages Horizontal and vertical linkages Increasing returns to scale Industrialization Input chains Linkages Multiple equilibria Pre-industrial production methods Underdevelopment traps 

JEL Classifications

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Antonio Ciccone
    • 1
  1. 1.