The "home market effect" (HME) is an essential topic of the new trade theory. Assuming the transport costs only for the manufacturing goods, Krugman (1980) shows that the country with bigger market size is a net exporter. The assumption of free transport of the agricultural good was shown...

This paper examines a new economic geography model with multiple (three) industries and urban costs. The industries are asymmetric in their transport costs. The following results were obtained. First, if transport costs sufficiently decrease whereas commuting costs are constant, we have three...