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Peaks and troughs in the spatial distributions of population, employment and wealth are a universal phenomenon in search of a general theory. Such spatial imbalances have two possible explanations. In the first, uneven economic development can be seen as the result of the uneven distribution of...
Persistent link: https://www.econbiz.de/10005662148
We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...
Persistent link: https://www.econbiz.de/10005667127
agglomeration of economic activities. …
Persistent link: https://www.econbiz.de/10005791623
dispersive forces become prevalent at the country level, agglomeration incentives strenghtens specialization within a large …
Persistent link: https://www.econbiz.de/10005791737
This Paper estimates the agglomeration benefits that arise from vertical linkages between firms. The analysis is based … agglomeration benefits of the spatial variation in firm level nominal wages. Unusually detailed intermediate input data allow us to …
Persistent link: https://www.econbiz.de/10005067387
the aim of comparing the only two possible market outcomes, i.e. agglomeration and dispersion. More precisely, we use the … plausible values of the main parameters suggest that there might be excessive agglomeration. …
Persistent link: https://www.econbiz.de/10005497807
This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … endogenous markups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to … `evenness'. Accordingly, the role of firm heterogeneity in selection models of agglomeration can not be fully understood without …
Persistent link: https://www.econbiz.de/10011083916
This Paper surveys the empirical literature on the economic geography of trade flows, factor prices, and the location of production. The discussion is structured around the empirical predictions of a canonical theoretical model. We review empirical evidence on the determinants of trade costs and...
Persistent link: https://www.econbiz.de/10005662227
This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find...
Persistent link: https://www.econbiz.de/10005666492
Recent trade models determine the equilibrium distribution of firm-level efficiency endogenously and show that freer trade shifts the distribution towards higher average productivity due to entry and exit of firms. These models ignore the possibility that freer trade also alters the firm-size...
Persistent link: https://www.econbiz.de/10005666664