We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two-city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when...

We depict an industrial district as a center of innovation where positive local spillovers sustain the endogenous invention of new goods by profit-seeking firms. After invention, firms face a crucial choice between reaching distant markets by export or plant delocation. Attempts by firms to...

Does trade policy shape a country's internal economic geography? Empirical evidence on the spatial effects of trade policy in developing countries is limited. This paper contributes to this literature by looking at the experience of Brazil over the 1990s. In particular, an econometric analysis...