This Paper develops a model in which the interaction between product market imperfections, transportation costs, unions and workers immobility across regions creates a tendency for agglomeration of firms when transportation costs are low. The model fits quite well the European experience. It is...

This paper analyses the evolution of employment in the Belgian provinces during the period 1974-92. It identifies provincial, industrial and temporal effects. This allows us to construct a 'virtual' employment series by filtering out provincial effects. A comparison with actual employment...