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Geographically Localized Externalities and Comparative Advantage in New Economic Geography

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  • Antonella Nocco

Abstract

We show that the standard new economic geography model results are enriched by the consideration of potential international differences in productivity levels, because this allows a more complete description of centripetal and centrifugal forces, which will be distinguished as originated by traditional agglomeration and dispersion forces and comparative advantage. Moreover, we suggest a simple way to evaluate the "intensities" of these forces for full agglomeration equilibria. Finally, we show that stability properties change when regional productivity levels depend upon knowledge spillovers (congestions) which are geographically localized allowing the region with a higher skilled workers density to have higher (lower) productivity levels.

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  • Antonella Nocco, 2007. "Geographically Localized Externalities and Comparative Advantage in New Economic Geography," Economia politica, Società editrice il Mulino, issue 1, pages 13-42.
    • Handle: RePEc:mul:jb33yl:doi:10.1428/24088:y:2007:i:1:p:13-42
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    Cited by:

    1. Mario Maggioni & Teodora Uberti, 2009. "Knowledge networks across Europe: which distance matters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 691-720, September.

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