On the new economic geography of a multicone world
Pasquale Commendatore (),
Ingrid Kubin () and
Review of International Economics, 2018, vol. 26, issue 3, 539-554
We build a new economic geography model incorporating differences in productivity among sectors and countries, thus allowing for comparative advantage. We study the role that market size, absolute advantage, and comparative advantage have on the trade patterns and the long‐run spatial distribution of economic activity in a world with multicones of specialization. We briefly mention the possibility of long‐term fluctuations in the spatial distribution of industry by relying on a discrete‐time framework.
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