This paper focuses on two distint 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 …

the main features of the recent economic geography literature while allowing for the derivation of analytical results by …

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. We show that high and low trade costs imply … that all regions involve a positive share of the industrial sector. When urban costs are linear, there exists a stable …

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 …

trade costs, single industry with local factor advantage and two industries with comparative advantages for any trade costs …

. No clear answer emerges for the following two reasons: (i) except for small range of transport cost values, there is …

sufficient to make the symmetric configuration unstable for all transport cost values and to make partial agglomeration of firms … doing, we ignore fixed costs and show that it is imperfect competition more than increasing returns that matters for the … formation of agglomeration in economic geography.. …