solve analytically. We use the modified model to analyse the tendencies for geographical agglomeration of manufacturing … manufacturing tends to agglomerate for low trade costs. In the physical capital case, on the contrary, agglomeration will not occur …

models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing … (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core–periphery (CP) model … of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors …

asymmetric dispersion of workers rather than their symmetric dispersion or complete agglomeration in a specific region. …

-integrated firms is a counter-example to the strong agglomeration effects found in the CP model. A symmetric equilibrium will always be … stable and hence agglomeration is prevented. The introduction of vertically-integrated firms that can separate the location … original CP model and thus lead to more agglomeration. Second, it also tends to decrease the parameter space in which full …