Commendatore, PasqualeUniversity of Naples ‘Federico II’
Author
Kubin, IngridVienna University of Economics and Business Administration
Author
Mossay, PascalUCLouvain
Author
Abstract
We build a new economic geography model incorporating differences in productivity among sectors and countries, thus allowing for comparative advantage. We study the role that market size, absolute advantage, and comparative advantage have on the trade patterns and the long-run spatial distribution of economic activity in a world with multicones of specialization. We briefly mention the possibility of longterm fluctuations in the spatial distribution of industry by relying on a discrete-time framework.
Commendatore, P., Kubin, I., & Mossay, P. (2018). On the new economic geography of a multicone world. Review of International Economics, 26(3), 539-554. https://doi.org/10.1111/roie.12312 (Original work published 2018)