Tabuchi, Takatoshi; Thisse, Jacques-François; Zeng, Dao-Zhi - C.E.P.R. Discussion Papers - 2002
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...