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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.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2000/2000cf93.pdf
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-93.

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Length: 42 pages
Date of creation: Sep 2000
Date of revision:
Handle: RePEc:tky:fseres:2000cf93
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  1. Keith Head & Thierry Mayer, 2004. "Non-Europe : the magnitude and causes of market fragmentation in the EU," Cahiers de la Maison des Sciences Economiques bla99004a, Université Panthéon-Sorbonne (Paris 1).
  2. Fujita, Masahisa & Thisse, Jacques-Francois, 1996. "Economics of Agglomeration," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 339-378, December.
  3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  4. Donald A. Walker (ed.), 2000. "Equilibrium," Books, Edward Elgar, volume 0, number 1585.
  5. GINSBURGH, Victor & PAPAGEORGIOU, Yorgo & THISSE, Jacques-François, . "On existence and stability of spatial equilibria and steady-states," CORE Discussion Papers RP -651, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Takatoshi Tabuchi & Dao-Zhi Zeng, 2000. "Stability of Spatial Equilibrium," CIRJE F-Series CIRJE-F-79, CIRJE, Faculty of Economics, University of Tokyo.
  7. 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.
  8. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  9. 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.
  10. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
  11. 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.
  12. Zeng, Dao-Zhi, 2002. "Equilibrium stability for a migration model," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 123-138, January.
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