A simple two-country model of economic geography is constructed in order to examine the effect of tariff competition on the spatial distribution of manufacturing activities as well as on welfare. We show that when the transport cost is small, tariff competition with firm migration leads to a...

This paper shows that a family of the Dixit–Stiglitz type of new economic geography models is capable of simulating the real-world tendency for agglomeration to the primate city. It is often observed that while regional populations were dispersed in early times, they have been increasingly...

In this paper, spatial competition between two sellers in a market (Hotelling, 1929) and total transportation costs minimization (Weber, 1909) are combined, and equilibrium and optimum locations of firms are analyzed along with the consequent policy implications. We show that when the output...

Highlighting market-size effects, the new economic geography has enriched our understanding of the functioning of the space economy. Contrary to its importance in practice, land use for production has received no attention in the branches of the economy, on which the new economic geography puts...

We develop a multi-country Dixit-Stiglitz trade model and analyze how industry location and welfare respond to changes in: (i) transport frictions (e.g., infrastructure, transportation technology); and (ii) non-transport frictions (e.g., tariffs, standards and regulations). We show that changes...