New Economic Geography
AbstractThe 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 several assumptions of spatial agglomeration processes are addressed. In particular, we investigate the effects of transport costs for agricultural goods, spatial spillovers, the presence of non-tradable services and limited mobility of the labour force. It becomes clear that the tendency towards deconcentration of manufacturing is more marked - the higher the transport costs for agricultural goods, - the stronger the positive spillovers across the regions, - the more income spent on services, - the more limited the mobility of the labour force.
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Bibliographic InfoPaper provided by University of Kassel, Institute of Economics in its series Discussion Papers in Economics with number 65/04.
Length: 35 pages
Date of creation: Nov 2004
Date of revision:
Neue Ökonomische Geographie; Transportkosten; nicht handelbare Dienstleistungen; Spillovers;
Find related papers by JEL classification:
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-13 (All new papers)
- NEP-GEO-2005-02-13 (Economic Geography)
- NEP-HPE-2005-02-13 (History & Philosophy of Economics)
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- Marcin Bogdañski, 2012. "Modern theories of regional development – a review of some concepts," Oeconomia Copernicana, Polskie Towarzystwo Ekonomiczne Oddzial w Toruniu, Wydzial Nauk Ekonomicznych i Zarzadzania UMK, vol. 2, pages 25-41.
- Nouvelle économie géographique in Wikipedia (French)
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