For reasons of analytical tractability, new economic geography (NEG) models treat geography in a very simple way: attention is either confined to a simple 2-region or to an equidistant multi-region world. As a result, the main predictions regarding the impact of e.g. diminishing trade costs are...

This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal...

Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalisation scenario. In order to examine the impact of European and international...

This paper presents a spatial analysis of the regional dimensions of poverty and economic development across provinces of Iran. It offers one of the few estimations made in developing countries using this strand of New Economic Geography (NEG) models and provides a comparison of the results for...

Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalization scenario. In order to examine the impact of European and international...

Regional economic integration through logistics, information network, and connectivity improvements can increase the “virtual” size of an economy as trade with neighboring countries increases. This leads to substantial benefits from scale, network, coordination, and agglomeration economies....

The centre of economic activities in Japan was once in western Japan. Since the mid-nineteenth century, however, economic activities within Japan have been continuously shifting towards the east side of the country including Tokyo. Conventional wisdom associates the end of the Tokugawa feudal...

We study the effects of trade integration on the regional coevolution of income, migrations and unemployment in a dynamic coreperiphery model with limited labor mobility and frictions in the job matching process. Our model can help explain a recently documented empirical puzzle, i.e., the...

We study the dynamics of inter-regional economic disparities for a number of development characteristics, test the hypothesis of the new economic geography and connect the results with the prediction of the bell curve describing spatial concentration over time. The results of our analysis...