Towards a Multiregional NEG Framework: Comparing Alternative Modelling Strategies

This chapter reviews the New Economic Geography (NEG) models that explain the uneven distribution of economic activity across space employing endogenous agglomeration processes, and the interplay of agglomeration and dispersion forces. Unlike the two-region models that have a restricted applicability, this chapter focuses on the multiregional NEG models recently developed in the literature, reviews their contributions systematically and compares different modelling strategies. As unifying framework, we use the footloose entrepreneur model considering the role and nature of transport costs, and the welfare properties of the spatial equilibria and the design of optimal economic policies.

[1]  A. Venables,et al.  Globalization and the Inequality of Nations , 1995 .

[2]  P. Krugman,et al.  Trade Policy and the Third World Metropolis , 1992 .

[3]  T. Akamatsu,et al.  A Simplified Approach to Analyzing Multi-regional Core-Periphery Models , 2009 .

[4]  A. Venables,et al.  Agglomeration and Economic Development: Import Substitution vs. Trade Liberalization , 1998 .

[5]  A. Venables,et al.  Infrastructure, Geographical Disadvantage, Transport Costs, and Trade , 2001 .

[6]  O. Villar.  Spatial distribution of production and international trade: a note , 1999 .

[7]  A. Venables,et al.  The spread of industry: spatial agglomeration in economic development , 1996 .

[8]  Anthony J. Venables,et al.  Equilibrium Locations of Vertically Linked Industries , 1996 .

[9]  Jacques-François Thisse,et al.  How density economies in international transportation link the internal geography of trading partners. , 2006 .

[10]  Kristian Behrens,et al.  International Integration and Regional Inequalities: How Important is National Infrastructure? , 2004 .

[11]  Rosella Nicolini,et al.  Regional Convergence and International Integration , 2000 .

[12]  Philippe Martin,et al.  Industrial location and public infrastructure , 1994 .

[13]  Teodor Gabriel Crainic,et al.  Survey Paper - A Review of Empty Flows and Fleet Management Models in Freight Transportation , 1987, Transp. Sci..

[14]  Takatoshi Tabuchi,et al.  Locational disadvantage of the hub , 2006 .

[15]  Jacques-François Thisse,et al.  The Economics of Agglomeration , 1996, Oxford Research Encyclopedia of Economics and Finance.

[16]  Xiao-Ping Zheng,et al.  INDUSTRIAL AGGLOMERATION: ASYMMETRY OF REGIONS AND TRADE COSTS , 2013 .

[17]  Pasquale Commendatore,et al.  A Three-Region New Economic Geography Model in Discrete Time: Preliminary Results on Global Dynamics , 2013 .

[18]  A. Venables,et al.  The Spatial Economy: Cities, Regions, and International Trade , 1999 .

[19]  Kiyohiro Ikeda,et al.  Spatial Period-Doubling Agglomeration of a Core-Periphery Model with a System of Cities , 2009 .

[20]  The Footloose Entrepreneur Model with 3 Regions , 2013 .

[21]  Rikard Forslid,et al.  Economic Geography and Public Policy , 2011 .

[22]  Anthony J. Venables,et al.  Economic Geography and International Inequality , 2001 .

[23]  Jacques-François Thisse,et al.  New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences☆ , 2009 .

[24]  T. Akamatsu,et al.  Spatial Discounting, Fourier, and Racetrack Economy: A Recipe for the Analysis of Spatial Agglomeration Models , 2012 .

[25]  I. Sushko,et al.  Economic integration and agglomeration in a customs union in the presence of an outside region , 2012 .

[26]  Elhanan Helpman,et al.  The Size of Regions , 1995 .

[27]  Jacques-François Thisse,et al.  New economic geography: A guide to transport analysis , 2008 .

[28]  Olga Alonso‐Villar.  Large Metropolises in the Third World: An Explanation , 2001 .

[29]  P. Krugman.  Scale Economies, Product Differentiation, and the Pattern of Trade , 1980 .

[30]  Jacques-François Thisse,et al.  Agglomeration and Welfare: The Core-Periphery Model in the Light of Bentham, Kaldor and Rawls , 2004 .

[31]  Jacques-François Thisse,et al.  Taste Heterogeneity, Labor Mobility and Economic Geography , 2001 .

[32]  K. Behrens,et al.  Transportation, freight rates, and economic geography , 2011 .

[33]  Jacques-François Thisse,et al.  Agglomeration and Trade Revisited , 2002, World Scientific Studies in International Economics.

[34]  Stein Østbye.  Regional Policy Analysis in a Simple General Equilibrium Model with Vertical Linkages , 2010 .

[35]  Enlargement and the EU Periphery: The Impact of Changing Market Potential , 2004 .

[36]  Jacques-François Thisse,et al.  Integration, agglomeration and the political economics of factor mobility , 2002 .

[37]  Marc Schramm,et al.  Adding geography to the new economic geography : bridging the gap between theory and empirics , 2010 .

[38]  Frédéric Robert-Nicoud.  Agglomeration and Trade with Input–Output Linkages and Capital Mobility , 2006 .

[39]  P. Krugman.  Increasing Returns and Economic Geography , 1991 .

[40]  Anthony J. Venables,et al.  Shifts in Economic Geography and their Causes , 2006 .

[41]  S. Castro,et al.  The core-periphery model with three regions and more , 2011 .

[42]  Iryna Sushko,et al.  Regional integration, international liberalisation and the dynamics of industrial agglomeration , 2014 .

[43]  Itzhak Zilcha,et al.  Topics in public economics : theoretical and applied analysis , 1998 .

[44]  D. Puga.  The Rise and Fall of Regional Inequalities , 1997 .

[45]  Agglomeration and Endogenous Capital , 1999 .

[46]  M. Crozet,et al.  EU Enlargement and the Internal Geography of Countries , 2004 .

[47]  Jacques-François Thisse,et al.  On economic geography in economic theory: increasing returns and pecuniary externalities , 2001 .

[48]  Rikard Forslid,et al.  An analytically solvable core-periphery model , 2003 .

[49]  Michael Pflüger,et al.  A Synthesis of Footloose-Entrepreneur New Economic Geography Models: When is Agglomeration Smooth and Easily Reversible? , 2007 .

[50]  S. Wiggins.  Introduction to Applied Nonlinear Dynamical Systems and Chaos , 1989 .

[51]  Xiao-Ping Zheng,et al.  Industrial Agglomeration and Dispersion in Gate and Hinterland Regions , 2013 .

[52]  P. Krugman,et al.  The Spatial Economy , 1999 .

[53]  Simon P. Anderson,et al.  Spatial Competition, Pricing, and Market Power in Transportation: A Dominant Firm Model , 2008 .

[54]  Anthony J. Venables,et al.  Preferential trading arrangements and industrial location , 1997 .

[55]  J. Kranich.  Agglomeration, innovation and international research mobility , 2009 .

[56]  Stefan Wrzaczek,et al.  Coping with inefficiencies in a New Economic Geography model: The unintended consequences of policy interventions , 2015, Math. Soc. Sci..

[57]  Michael Pflüger.  A Simple, Analytically Solvable Chamberlinian Agglomeration Model , 2001, SSRN Electronic Journal.

[58]  Elisenda Paluzie.  Trade policy and regional inequalities , 2001 .

[59]  J. Levinsohn,et al.  Monopolistic Competition and International Trade: Reconsidering the Evidence , 1993 .

[60]  Michael W. M. Roos.  How important is geography for agglomeration , 2005 .

[61]  Takatoshi Tabuchi,et al.  Changes in Transport and Non Transport Costs: Local vs. Global Impacts in a Spatial Network , 2007 .