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Industrial location : a synthesis of Chamberlin and Ricardo

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

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.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006055.

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Date of creation: 00 Jun 2006
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Handle: RePEc:cor:louvco:2006055
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  1. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  2. 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.
  3. Crafts, Nicholas & Mulatu, Abay, 2004. "What Explains the Location of Industry in Britain, 1871-1931," CEPR Discussion Papers 4356, C.E.P.R. Discussion Papers.
  4. 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.
  5. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers 1862, Harvard - Institute of Economic Research.
  6. Rikard Forslid & Ian Wooton, 2003. "Comparative Advantage and the Location of Production," Review of International Economics, Wiley Blackwell, vol. 11(4), pages 588-603, 09.
  7. Paolo Epifani, 2001. "Heckscher-Ohlin and Agglomeration," KITeS Working Papers 126, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2001.
  8. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
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