This paper tests two competing models, one deriving from new economic geography theory (NEG) emphasising varying market potential, the other with a basis in urban economics theory (UE) in which the main emphasis is on producer service linkages. Using wage rate variations across small regions of...

Regional inequalities in product per capita and labour productivity in the EU are large and persistent. Building on a model in which aggregate increasing returns is the result of the increase in the number of varieties of composite services, under competitive manufactures, we derive a simple and...

The past fifty years have witnessed a major transformation of Britain’s urban system. Some cities have consistently prospered and been relatively successful in terms of maintaining or increasing their share of national employment and population, whilst others have lost ground and have...

In this paper we have combined concepts from the field of urban economics with views from the area of geographic economics (the New Economic Geography). This approach enabled us to depict both the significance of the characteristics of the city itself and that of its location. Cities which...