This paper studies the interdependence of economic geography and transportation technology. A two-region model is used … to obtain the conditions for the modern transportation technology to be adopted in an economy. In particular, the impact … of economic geography upon the adoption of the modern technology is examined. Furthermore, I discuss what combination of …

'agglomeration in a system of cities' in which both intra-city trade and inter-city trade are considered. Enriching both the … economic (i.e. intensity of trade) integration, the higher is the magnitude of the inefficiency. From a theoretical point of …