Krugman's Core-Periphery Model with Heterogeneous Quality of Land

In 1991, Krugman developed a general equilibrium model with two sectors and two regions, from which two patterns of industrial location could be deduced endogenously, namely symmetric dispersion at 50 per cent and total concentration. In this paper, we present a very simple extension to this original model. The consideration of regions with different agricultural populations, reflecting a different quality of land, allows us to deduce asymmetric distributions of the manufacturing sector. These asymmetric distributions complete and enrich the casuistry derived from the original approach, drawing it closer to the observable world.