briefly studies how trade in intermediate goods and endogenous land demand affect segmentation and agglomeration. …. It shows that the interplay of heterogeneous skills and comparatively homogeneous land demand triggers skill segmentation … and agglomeration. The core region that is more attractive to high skilled workers has a disproportionately large share of …

models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing … (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core–periphery (CP) model … of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors …

the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter …-industry trade. The agglomeration force is the improvement in the quality of matches when firms recruit from a bigger pool of labor …. The forces against agglomeration are the existence of trade costs and monopoly power in the labor market. We show that …

to industrial agglomeration and inter-regional trade. Labor heterogeneity gives local monopoly power to firms but also … the local market, giving rise to an agglomeration force which can offset the forces against, trade costs and the erosion … of monopoly power. We derive analytically a robust agglomeration equilibrium and illustrate its properties with numerical …