Behrens, Kristian; Gaigné, Carl; Ottaviano, Gianmarco I.P. - In: Journal of Economic Geography 6 (2006) 3, pp. 347-368
We study the impacts of changes in international trade and domestic transport costs on the internal geography of countries in the presence of geographical asymmetries. To do so, we develop a two-country four-region model in which one country has a region that exhibits a 'geographical advantage'...