Ekholm, Karolina; Forslid, Rikard - 1998
This paper analyses the effect on agglomeration tendencies of allowing firms to become multi-region firms in a standard …-periphery (CP) model developed by Krugman (1991). The introduction of horizontal multi-region firms dampens the strong agglomeration …, agglomeration tendencies are strengthened. Second, actual production tends to be more spread out, and, in this sense, they are …