We develop a model that investigates how strategically interacting firms share a given set of spatially separated markets. We show that, for intermediate val-ues of transport costs, the spatial distribution of firms determines the structure of interregional trade, which in return influences this distribution. Our results highlight the strong and circular link between the spatial distribution of eco-nomic activities and the endogenous structure of trade. Further, they suggest that agglomeration of firms is not necessarily incompatible with high values of transport costs. / Nous développons un modèle qui analyse comment des entreprises inter-agissant stratégiquement se partagent un ensemble de marchés spatialement séparés. Nous montrons que, pour des valeurs intermédiaires des coûts de transport, la répartition spatiale des entreprises détermine la structure des échanges interrégionaux, laquelle influence en retour cette distribution. Nos résultats mettent en évidence le lien étroit et circulaire existant entre la distribution spatiale de l'activité économique et la structure endogène des échanges. De plus, ils suggèrent que l'agglomération des entreprises n'est pas nécessairement incompatible avec des coûts de transport élevés.
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Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS UMR 5118, Université de Bourgogne in its series LEG - Document de travail - Economie with number
2003-08.
Length: 34 pages Date of creation: Apr 2003 Date of revision: Handle: RePEc:lat:legeco:2003-08
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Find related papers by JEL classification: R32 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other Production and Pricing Analysis F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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