The standard model of New Economic Geography (NEG) presents a synthesis of polarization and neo-classical theories. Within a monopolistic competition framework it aims to explain processes of concentration and deconcentration of manufacturing in a two-sector economy. In this paper the effects of...

The development state of regions depends not only on the own efficiency, but also on spatial spillovers. Positive (backward linkages, use of the infrastructure in neighbouring economic areas etc.) and negative (e. g. environmental effects) spillovers give reasons for a mutual economic influence...