We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy, when a rise in the regional population of workers generates higher urban costs. We show that high and low trade costs imply that all regions involve a positive share of the...

This paper investigates the joint impact of Chamberlinian monopolistic competition and Ricardian comparative advantages on the structure of trade and industries. We develop a trade model with several industries employing local factors. We then investigate the structure of trade and industries as...