IDEAS home Printed from https://ideas.repec.org/a/ete/revbec/20060104.html
   My bibliography  Save this article

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

Author

Listed:
  • K. De Bruyne

Abstract

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.

Suggested Citation

  • K. De Bruyne, 2006. "The Location of Economic Activity. First versus Second Nature Core-Periphery Theories," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature, vol. 0(1), pages 75-104.
  • Handle: RePEc:ete:revbec:20060104
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/119730/1/TEM_2006-1_04_De+Bruyn.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karen Crabbé & Karolien De Bruyne, 2013. "Taxes, Agglomeration Rents and Location Decisions of Firms," De Economist, Springer, vol. 161(4), pages 421-446, December.
    2. Marko Danon, 2014. "Constructing a Novel Competitiveness Index for European Regions," GREDEG Working Papers 2014-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/fekulbe.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.