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Increasing Returns and Economic Geography
Journal of Political Economy
Vol. 99, No. 3 (Jun., 1991), pp. 483-499
Published by: The University of Chicago Press
Stable URL: http://www.jstor.org/stable/2937739
Page Count: 17
You can always find the topics here!Topics: Transportation costs, Economies of scale, Economic regions, Political economy, Geographic regions, Economic geography, Economic models, Demand, Agricultural economics, Economic externalities
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This paper develops a simple model that shows how a country can endogenously become differentiated into an industrialized "core" and an agricultural "periphery." In order to realize scale economies while minimizing transport costs, manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing. Emergence of a core-periphery pattern depends on transportation costs, economies of scale, and the share of manufacturing in national income.
Journal of Political Economy © 1991 The University of Chicago Press