New theoretical work on spatial concentration of industry – particularly the ‘new economic geography’ – has significantly helped us understanding why some regions develop more than others, why cities arise and where they are located. However, this work rarely incorporates Adam Smith’s observation that spatial differences in economic activity also reflect variations in physical geography, which ...

Most of the literature argues that competitive analysis has nothing interesting to say about location. This paper argues, to the contrary, that a competitive model can have something interesting to say about location, provided that locations are not identical and transportation costs are not zero. To do this, it constructs a competitive intertemporal general equilibrium model and applies it to ...

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 theory, the estimation results show that a spatial wage structure exists for the EU regions. By going back ...

This paper examines the stable outcomes of organization choice between single-plant and multi-plant under asymmetric two regions. A typical implicit assumption on monopolistic competition models for trade and economic geography is that firms can produce and sell only at one place. This paper allows endogenous determination of the number of plants in a new economic geography model. In particular...

Economic development and underdevelopment is one aspect of the uneven spatial distribution of economic activity. This paper reviews existing literature on geography and development, and argues that rigorous theoretical and empirical analysis is needed to increase understanding of the role of geography in development and to better design development policy. The analytical issues are: why does ec...

The objective of great investments in telecommunication networks is to approach economies and put an end to the asymmetries. The most isolated regions could be the beneficiaries of this new technological investments wave disseminating trough the territories. The new economic scenarios created by globalisation make high capacity backbones and coherent information society polity, two instruments ...

the purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. more specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. the results indicate that this theory provides a good description of the spatial structure of w...