Brand Agriculture and Economic Geography: A General Equilibrium Analysis

This paper presents a general equilibrium model of NEG incorporating the brand agriculture which produces differentiated agricultural products. Focusing on the core-periphery space, we show that highly differentiated brand agriculture can be sustained in the periphery even when the accessibility of the core market is not particulary good. This result gives support for promoting innovation in rural area in order to avoid direct price competition in generic commodity market under unfavorable competitive condition.