A Harmonization of First and Second Natures

Pierre Picard and Dao-Zhi Zeng ()

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: This paper investigates the joint impact of the first nature and the second nature forces on industry location. Towards this aim, we develop a two-region new economic geography model where local factor congestion and location advantages compete with demand linkages and product market crowding. In particular we study the case of absolute location advantage in a single industry model and the case of comparative advantages in a two-industry model. We characterize the structure of industries and discuss the possibilities of catastrophic changes, endogenous industrial asymmetries and specialization. We find that absolute location advantage are associated with a smooth agglomeration process and comparative advantages with a catastrophic process.

JEL-codes: F12 R10 R13 (search for similar items in EconPapers)
Date: 2009
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: View citations in EconPapers (2)

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http://wwwen.uni.lu/content/download/23998/291661/ ... Second%20Natures.pdf (application/pdf)

Related works:
Journal Article: A HARMONIZATION OF FIRST AND SECOND NATURES (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:09-10

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