Trade is not necessary for agglomeration to arise

Kristian Behrens ()

Working Papers from HAL

Abstract: We develop a spatial general equilibrium model in which the absence of trade is an endogenous outcome and we show that trade is not a necessarycondition for agglomeration to arise. More precisely, extending the modeldeveloped by Ottaviano et al. [13], we show that equilibria without tradediffer significantly from those obtained in the presence of trade. Somewhatsurprisingly, equilibrium structures without trade are richer than those withtrade, since partial agglomeration becomes a feasible outcome. Equilibrianow depend on the ratio of mobile to immobile factors and an increase in thatratio triggers a process of spatial agglomeration.

Keywords: Agglomeration; Corner solutions; Imperfect competition; Trade (search for similar items in EconPapers)
Date: 2003-04
Note: View the original document on HAL open archive server: https://hal.science/hal-01526534v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in [Research Report] Laboratoire d'analyse et de techniques économiques(LATEC). 2003, 30 p., figures, bibliographie

Downloads: (external link)
https://hal.science/hal-01526534v1/document (application/pdf)

Related works:
Working Paper: Trade is not necessary for agglomeration to arise (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01526534

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().