A thriving small business sector is central to the vision of economic and social regeneration of rural areas presented in Defra’s Rural Strategy 20041. Away from urban centres, small and medium enterprises (SMEs) provide local jobs, services and places to trade, as well as the potential to...

In the literature of new trade theory, most studies have dealt with industrial location by imposing an assumption of free transportation in the agricultural sector. We explicitly incorporate arbitrary transport costs in both the manufacturing and agricultural sectors into the...