This paper models the relationship between countries' distance from global economic activity, endogenous investments in education, and economic development. Firms in remote locations pay greater trade costs on both exports and intermediate imports, reducing the amount of value added left to...

One account of spatial concentration focuses on productivity advantages arising from market size. We investigate this for forty regions of Japan. Our results identify important effects of a region's own size, as well as cost linkages between producers and suppliers of inputs. Productivity links...

Eurasian countries are endowed with a unique geography that differs from other regions in the global economy and determines the specifics of economic development and integration in the Eurasian space. In Eurasia, four of the five EAEU countries (five of the six EDB Member States) have no access...

This background note analyzes the economic geography of the Horn of Africa using the framework of the 2009 Word Development Report. For the purpose of this report, the Horn of Africa (henceforth HoA) comprises of five countries: Djibouti, Eritrea, Ethiopia, Kenya and Somalia. This note first...

This paper quantifies the causal effect of capital status on road network integration of U.S.micro/metropolitan statistical areas. Road network integration is defined using a class of measurements that evaluate how well a location is connected to all other locations through the National Highway...

We consider the distribution of economic activity within a country in light of three leading theories - increasing returns, random growth, and locational fundamentals. To do so, we examine the distribution of regional population in Japan from the Stone Age to the modern era. We also consider the...

In explaining the uneven spatial distribution of economic activity, urban economics and new economic geography (NEG) dominate recent research in economics. A main difference between these two approaches is that NEG stresses the role of spatial linkages whereas urban economics does not do so. We...

Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs specification used. This paper shows that the specification...

For reasons of analytical tractability, new economic geography (NEG) models treat geography in a very simple way: attention is either confined to a simple 2-region or to an equidistant multi-region world. As a result, the main predictions regarding the impact of e.g. diminishing trade costs are...

Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...

Based on a new economic geography (NEG) model by Puga (1999), we use the equilibrium wage equation to estimate two key structural model parameters for the NUTS II EU regions. These estimations enable us to come up with an empirically grounded free-ness of trade parameter. In line with NEG...

We incorporate the now standard knowledge-capital model of multinational firms in a new economic geography setting. The theoretical predictions of our model suggest that unskilled labor mobility leads to less concentration of production than skilled labor mobility does. This is in line with...

Our paper extends the capital tax competition literature by incorporating heterogeneous capital and agglomeration. Our model nests the standard tax competition model as well as the special case in which there is agglomeration but no firm/capital heterogeneity and the opposite case, firm...

This paper studies the social desirability of agglomeration and the efficiency arguments for policy intervention in a simple, analytically solvable "new economic geography" model with two trade integrating regions. The location pattern emerging as market equilibrium is "bubble-shaped", i.e. it...

Tax competition for a mobile factor is different in 'new economic geography settings' compared to standard tax competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax differential between the core and the periphery can be...

An analytically solvable model of new economic geography is developed. Acquisition of skills is costly for workers but it allows them to earn wages that are larger than those of the unskilled. Moreover, skills acquisition can be subsidized by a regional government. For large transport costs,...

This paper uses a two country trade and geography model of monopolistic competition to study the effects of wage policies and social policies on the location of industry. It is first shown that a union wage push in one of two otherwise identical countries induces a relocation of firms which...

This paper presents a simple, analytically solvable Chamberlinian agglomeration model. As in the canonical core-periphery (CP) model, two agglomerative forces are at work. However, the present model exhibits a 'pitchfork bifurcation' rather than the 'tomahawk bifurcation' of the CP model

A prominent feature of economic geography in America is the positive correlation amongst local incomes, housing costs and city population. This paper embeds a "black box" agglomeration economy within a more neoclassical general equilibrium model of local wages, rents and population to assess the...

Core-periphery imbalances and regional disparities figure prominently on the agenda of several disciplines, which result from their enormous impact on economic and social development around the world. In sociology, international relations, and economics, this concept is crucial in explanations...

This paper develops a two-region, two-sector general equilibriun model of location. The location of agricultural production is fixed, but ionopolistcally competitive manufacturing finns choose their location to maximize profits. If transportation costs are high, returns to scale weak, and the...

This paper presents a growth model where survival is endogenously determined and the abundance of natural resources affects the returns to labor. In geographic regions where natural resources are initially more abundant and the climate is relatively more hospitable, survival odds are higher....

Mit der New Economic Geography (NEG) kann die Verteilung von Unternehmen und Arbeitskräften auf Regionen modellhaft diskutiert werden. In diesem Beitrag wird untersucht, welche räumlichen Verteilungen der mobilen Arbeitskräfte und Unternehmen in einem NEG-Modellansatz resultieren, wenn die...

Purpose By observing facts of the "reversal of agglomeration" of Chinese enterprises during the period of rapid Internet development and using a new economic geography model combined with the data of the real estate sector, this paper deduces the influence of the "reshaping mechanisms" of the...

Based on the standard Footloose Capital model developed by Martin and Rogers (1995), I consider an integrated model that consists of a system of two regions and a third external region, in order to study the impact of improved market access on the Home Market Effect within the system of the two...

Introduction: Economic ties and trade blocs increase the flow of trade between participating countries and lead to different levels of economic and structural changes. Case description: This paper focuses on the structure of industrial value-added between China and Pakistan, as the two countries...

The article explores regional policy issues at the nexus of economic geography and the recent academic literature on the political economy of digitalization. The objective is to blend these two areas of research to derive a first set of preliminary policy implications for so called "Smart...

Information technology (IT) matters to prosperity. The top patenters are increasingly IT companies. We use data on US patents to document four trends in IT patenting. First, firm-level concentration in IT patenting is increasing over time. Second, geographic concentration in IT patenting is...

We undertake an exploration of the economic income (Gross Domestic Product, GDP) of Indian districts and cities based on scaling analyses of the dependence of these quantities on associated population size. Scaling analysis provides a straightforward method for the identification of network...

This research article seeks to specify and measure the determinants of multidimensional poverty in Colombia using the Unsatisfied Basic Needs (UBN) Index based on information from the latest available 2005 population census applying a spatial econometric approach. An exploratory analysis of the...

This open access book is based on "Spationomy – Spatial Exploration of Economic Data", an interdisciplinary and international project in the frame of ERASMUS+ funded by the European Union. The project aims to exchange interdisciplinary knowledge in the fields of economics and geomatics. For...

We identify negative spillovers exerted by large, successful manufacturing plants on other local production facilities in China. A short-lived alliance between the U.S.S.R. and China led to the construction of 150 "Million-Rouble plants" in the 1950s. Our identification strategy exploits the...