Masahisa Fujita (Konan University and Research Institute of Economy, Trade and Industry (RIETI)) Nobuaki Hamaguchi (Research Institute for Economics and Business Administration, Kobe University)
Abstract
This paper presents a general equilibrium model of NEG incorporating the brand agriculture which produces differentiated agricultural products. Focusing on the core-periphery space, we show that highly differentiated brand agriculture can be sustained in the periphery even when the accessibility of the core market is not particulary good. This result gives support for promoting innovation in rural area in order to avoid direct price competition in generic commodity market under unfavorable competitive condition.
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Publisher Info
Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number
207.