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On the Evolution of a Multi-regional System


  • Takatoshi Tabuchi

    (Faculty of Economics, University of Tokyo)

  • Jacques-Francois Thisse

    (CORE, Universite catholique de Louvain)

  • Dao-Zhi Zeng

    (Faculty of Economics, Kagawa Universtiy)


We study the effects of decrease in trade costs on the spatial distribution of industry in multi-regional economy, when a rise in the regional population of workers generates higher urban costs. We show that high and low trade costs imply the all regions involve positive share of the industrial sector. When urban costs are linear, there exists stable equilibrium for almost all values of trade costs. Furthermore, as trade costs fall, there is path of stable equilibria such that the industry is, first, agglomerated into a decreasing number of regions and, then, dipersed among a growing number of regions. The second phase arises because of the increasing urban costs associated with the process of agglomeration.

Suggested Citation

  • Takatoshi Tabuchi & Jacques-Francois Thisse & Dao-Zhi Zeng, 2000. "On the Evolution of a Multi-regional System," CIRJE F-Series CIRJE-F-93, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2000cf93

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    References listed on IDEAS

    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, March.
    2. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, March.
    3. T Tabuchi, 1986. "Existence and stability of city-size distribution in the gravity and logit models," Environment and Planning A, Pion Ltd, London, vol. 18(10), pages 1375-1389, October.
    4. A G Champion, 1994. "Population change and migration in Britain since 1981: evidence for continuing deconcentration," Environment and Planning A, Pion Ltd, London, vol. 26(10), pages 1501-1520, October.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
    7. Ginsburgh, Victor & Papageorgiou, Yorgo & Thisse, Jacques-Francois, 1985. "On existence and stability of spatial equilibria and steady-states," Regional Science and Urban Economics, Elsevier, vol. 15(2), pages 149-158, June.
    8. Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(2), pages 284-314, June.
    9. A G Champion, 1994. "Population Change and Migration in Britain since 1981: Evidence for Continuing Deconcentration," Environment and Planning A, , vol. 26(10), pages 1501-1520, October.
    10. Takatoshi Tabuchi & Dao-Zhi Zeng, 2004. "Stability of Spatial Equilibrium," Journal of Regional Science, Wiley Blackwell, vol. 44(4), pages 641-660.
    11. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    12. Zeng, Dao-Zhi, 2002. "Equilibrium stability for a migration model," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 123-138, January.
    13. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
    14. Donald A. Walker (ed.), 2000. "Equilibrium," Books, Edward Elgar Publishing, volume 0, number 1585.
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    Cited by:

    1. Sidorov, A., 2013. "Stability of Totally Agglomerated Equilibrium in a Multiregional Core-Periphery Model," Journal of the New Economic Association, New Economic Association, vol. 17(1), pages 44-62.

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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