The Empirics of Agglomeration and Trade

Thierry Mayer and Keith Head

No 3985, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines empirical strategies that have been or could be used to evaluate the importance of agglomeration and trade models. This theoretical approach, widely known as ?New Economic Geography? (NEG), emphasizes the interaction between transport costs and firm-level scale economies as a source of agglomeration. NEG focuses on forward and backward trade linkages as causes of observed spatial concentration of economic activity. We survey the existing literature, organizing the papers we discuss under the rubric of five interesting and testable hypotheses that emerge from NEG theory. We conclude the chapter with an overall assessment of the empirical support for NEG and suggest some directions for future research.

JEL-codes: F10 R10 (search for similar items in EconPapers)
Date: 2003-07
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (106)

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Related works:
Chapter: The empirics of agglomeration and trade (2004)
Working Paper: The Empirics of Agglomeration and Trade (2004)
Working Paper: The Empirics of Agglomeration and Trade (2004)
Working Paper: The Empirics of Agglomeration and Trade (2003)
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