This paper presents a modified Helpman model (1998) with an added tradable agriculture good, and modifies the manufacturing production function according to Forslid and Ottaviano (2003) to identify all possible spatial configurations of a two-region economy. Moreover, the current work neatly separates the four spatial shaping effects: market size effect, market crowding effect, cost of living effect, and urban congestion effect, and diagrammatically exposes how these forces shape spatial configurations as the degree of trade freeness increases.
關聯:
HITOTSUBASHI JOURNAL OF ECONOMICS 卷: 55 期: 1 頁碼: 1-20
