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Industrial location : a synthesis of Chamberlin and Ricardo

Author

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  • PICARD, Pierre M.
  • ZENG, Dao-Zhi

Abstract

This paper investigates the joint impact of Chamberlinian monopolistic competition and Ricardian comparative advantages on the structure of trade and industries. We develop a trade model with several industries employing local factors. We then investigate the structure of trade and industries as well as the possibilities of catastrophic changes and endogenous asymmetries in industry distribution. Three configurations are studied: multiple industries with local factor advantages at small trade costs, single industry with local factor advantage and two industries with comparative advantages for any trade costs. The last setting synthesizes the traditional results of Chamberlin and Ricardo.

Suggested Citation

  • PICARD, Pierre M. & ZENG, Dao-Zhi, 2006. "Industrial location : a synthesis of Chamberlin and Ricardo," CORE Discussion Papers 2006055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2006055
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-2006.html
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    References listed on IDEAS

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    1. Kristian Behrens & Carl Gaigné & Gianmarco I.P. Ottaviano & Jacques-François Thisse, 2006. "Is remoteness a locational disadvantage?," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 347-368, June.
    2. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    3. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    4. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    5. Nicholas Crafts & Abay Mulatu, 2005. "What explains the location of industry in Britain, 1871–1931?," Journal of Economic Geography, Oxford University Press, vol. 5(4), pages 499-518, August.
    6. Epifani, Paolo, 2005. "Heckscher-Ohlin and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 645-657, November.
    7. Rikard Forslid & Ian Wooton, 2003. "Comparative Advantage and the Location of Production," Review of International Economics, Wiley Blackwell, vol. 11(4), pages 588-603, September.
    8. Donald R. Davis & David E. Weinstein, 2002. "Bones, Bombs, and Break Points: The Geography of Economic Activity," American Economic Review, American Economic Association, vol. 92(5), pages 1269-1289, December.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    dispersion; comparative advantage; industrial specialization;

    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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