IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Location of Economic Activity. First versus Second Nature Core-Periphery Theories

Listed author(s):
  • K. De Bruyne

The location of economic activity is a topic that has occupied economists’ minds for a very long time now. Where do firms locate? What determines location decisions? And more importantly, what is the influence of increasing integration on location outcomes? First nature theories are able to explain location decisions exogenously. They refer to the presence of natural resources as the main determinant of location. They can not explain though why firms keep on clustering in a certain region although there are no natural resources that would make them opt for that particular location. There are however second nature theories that are able to explain these endogenous agglomeration outcomes. The goal of this paper is threefold. First of all, the backbone core-periphery model of the second nature – New Economic Geography – theories will be discussed. Two of its basic variations will be tackled extensively and contrasted with a more recent variation of the core-periphery model focussing on imperfections in the labour market. In discussing each variation of the core-periphery model, the focus will be on the link between transport costs and location that each theory predicts. Secondly, these predictions will be confronted with the empirical findings concerning location. Finally, the question of the relative importance of first versus second nature theories will be dealt with.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature in its journal Review of Business and Economic Literature.

Volume (Year): LI (2006)
Issue (Month): 1 ()
Pages: 75-104

in new window

Handle: RePEc:ete:revbec:20060104
Contact details of provider: Postal:
Naamsestraat 69, 3000 Leuven

Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ete:revbec:20060104. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.