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A Harmonization Of First And Second Natures

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  • Pierre M. Picard
  • Dao‐Zhi Zeng

Abstract

This paper investigates the joint impact of the first nature and the second nature forces on industry location. Towards this aim, we develop a two-region new economic geography model where local factor congestion and location advantages compete with demand linkages and product market crowding. In particular we study the case of absolute location advantage in a single industry model and the case of comparative advantages in a two-industry model. We characterize the structure of industries and discuss the possibilities of catastrophic changes, endogenous industrial asymmetries and specialization. We find that absolute location advantage are associated with a smooth agglomeration process and comparative advantages with a catastrophic process.
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  • Pierre M. Picard & Dao‐Zhi Zeng, 2010. "A Harmonization Of First And Second Natures," Journal of Regional Science, Wiley Blackwell, vol. 50(5), pages 973-994, December.
    • Handle: RePEc:bla:jregsc:v:50:y:2010:i:5:p:973-994
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    Cited by:

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    3. Ren Lu & Torger Reve & Jing Huang & Ze Jian & Mei Chen, 2018. "A Literature Review Of Cluster Theory: Are Relations Among Clusters Important?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 1201-1220, September.
    4. David Cuberes & Rafael González-Val, 2017. "The effect of the Spanish Reconquest on Iberian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 375-416, May.
    5. Behrens, Kristian & Picard, Pierre M., 2011. "Transportation, freight rates, and economic geography," Journal of International Economics, Elsevier, vol. 85(2), pages 280-291.
    6. Lili Tan & Dao-Zhi Zeng, 2014. "Spatial inequality between developed and developing economies," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 229-248, June.
    7. Dao‐Zhi Zeng & Shin‐Kun Peng, 2021. "Symmetric tax competition and welfare with footloose capital," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 472-491, March.
    8. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    9. Jian Wang & Junqian Xu, 2015. "Home market effect, spatial wages disparity: an empirical reinvestigation of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 313-333, December.
    10. Kiyohiro Ikeda & Yuki Takayama & José M. Gaspar & Minoru Osawa, 2022. "Perturbed cusp catastrophe in a population game: Spatial economics with locational asymmetries," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 961-980, September.
    11. Barbero, Javier & Zofío, José Luis, 2012. "The multiregional core-periphery model: The role of the spatial topology," Working Papers in Economic Theory 2012/12, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    12. Anna Agliari & Pasquale Commendatore & Ilaria Foroni & Ingrid Kubin, 2011. "Border Collision Bifurcations in a Footloose Capital Model with First Nature Firms," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 349-366, October.

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    More about this item

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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