EconPapers    
Economics at your fingertips  
 

Resource effects in the Core-Periphery model

María Pilar Martínez-García () and Jose Rodolfo Morales ()
Additional contact information
María Pilar Martínez-García: Facultad de Economía y Empresa. University of Murcia
Jose Rodolfo Morales: Facultad de Economía y Empresa. University of Murcia

Authors registered in the RePEc Author Service: María Pilar Martínez-García ()

No 201607, Gecomplexity Discussion Paper Series from Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation"

Abstract: This paper developes an extension of Krugman’s (1991) Core-Periphery model, by considering the traditional sector as a competitive primary sector that makes use of a renewable natural resource. The natural resource can be consumed or used as a raw material in the industrial sector. Three results stand out. First, the dynamics of the resource and its use as a raw material give rise to new dispersion forces: the resource and the primary price index effects. Second, the pattern that arises reverts the usual stability behavior in core-prephery models. And third, different types of bifurcationsarise, resulting in different patterns of agglomeration-dispersion. In addition to transport costs, the productivity of the resource sector plays a key role in the bifurcation diagrams.

Keywords: natural resources; new economic geography. (search for similar items in EconPapers)
JEL-codes: F12 F18 R12 Q01 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2016-07, Revised 2016-07
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.gecomplexity-cost.eu/repec/cst/wpaper/geco_dp_7_2016.pdf First version, 2016 (application/pdf)

Related works:
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:cst:wpaper:201607

Access Statistics for this paper

More papers in Gecomplexity Discussion Paper Series from Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation"
Bibliographic data for series maintained by Fabio Ceccarani ().

 
Page updated 2020-07-03
Handle: RePEc:cst:wpaper:201607