characteristics into two groups, those primarily important for agriculture and those primarily important for trade, we find that the … agriculture variables have relatively more explanatory power in countries that developed early and the trade variables have …

characteristics into two groups, those primarily important for agriculture and those primarily important for trade, we find that the … agriculture variables have relatively more explanatory power in countries that developed early and the trade variables have …

Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires … the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs … specification used. This paper shows that the specification of trade costs matters. Estimations of a NEG wage equation for a sample …