Agricultural sector and industrial agglomeration

Picard, Pierre;Zeng, Dao-Zhi
(2003)

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Authors
  • Picard, PierreUCLouvain
    Author
  • Zeng, Dao-Zhi
    Author
Abstract
We investigate an economic geography model in which agricultural goods are costly to transport and in which manufactures hire labor from the local agricultural sector as unskilled labor. We show that agricultural transport costs and local-unskilled labor requirements in firms act as a dispersion force. Location equilibria are compared with the first and second best outcomes and we show that their structure crucially depend on the parameters of agricultural sector.
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Citations

Picard, P., & Zeng, D.-Z. (2003). Agricultural sector and industrial agglomeration (ECON Discussion Papers 2003/19). https://hdl.handle.net/2078.5/36092