We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy …, when a rise in the regional population of workers generates higher urban costs. When the number of cities is unaffected by … falling trade costs, small cities become smaller for large trade costs, medium-sized cities become smaller for medium values …

This Paper focuses on two distinct facets of globalization: the decrease in the trade costs of goods and the decline of … communication costs between headquarters and production facilities within firms. When the unskilled have about the same wage in the … two regions, the decrease of these costs fosters the gradual agglomeration of plants in the core region accommodating the …

features of the recent economic geography literature, while allowing for the derivation of analytical results by means of …, instead of the simple Marshallian model used so far in the economic geography literature. …

. Selling to distant locations leads to lower sales because of both (pecuniary) transport costs and communication costs that …

unskilled/immobile workers. The market leads to the optimal outcome when transport costs are high or low. However, for …

industries are characterized by a smaller dispersion of costs across active firms. Moreover, in those industries the average cost …

caused an average productivity loss of roughly 13 per cent, whereas a reduction of intra-EU trade costs by 5 per cent would … countries and sectors depending on market accessibility and trade costs. We provide evidence that our results are robust to …

We show in the framework of a new economic geography model that when labour is heterogenous and productivity depends on …. The forces against agglomeration are the existence of trade costs and monopoly power in the labour market. We show that … costs. …