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 …

productivity and the other decreasing transportation costs, and in which agglomeration economies lead to persistence in urban … when transport costs were still relatively high, so urban agglomerations were localized in agricultural regions. When … transport costs fell, these local agglomerations persisted. In late developing countries, transport costs fell well before …

productivity and the other decreasing transportation costs, and in which agglomeration economies lead to persistence in urban … when transport costs were still relatively high, so urban agglomerations were localized in agricultural regions. When … transport costs fell, these local agglomerations persisted. In late developing countries, transport costs fell well before …