Tabuchi, Takatoshi; Thisse, Jacques-François; Zhu, Xiwei - C.E.P.R. Discussion Papers - 2014
New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities … of migration costs, which are a strong impediment to moving. We show that this neglect is unwarranted. Regardless of the … level of transport costs, rising labor productivity fosters the agglomeration of activities, whereas falling transport costs …