Redispersion is different from dispersion: Spatial economy of multiple industries

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Abstract

In the literature of new economic geography, it is observed that the manufacturing sector disperses because of high transportation costs, agglomerates for intermediate transportation costs, and redisperses for low transportation costs. This paper examines a model with multiple manufacturing industries and finds that the redispersion process is different from the dispersion process. More precisely, there is at most one industry that disperses in the redispersion process while all industries disperse in the dispersion process. Furthermore, it is shown that the interaction of demand, increasing returns, and transportation costs is enough to derive a separating equilibrium where at least two industries agglomerate in different regions.

Original languageEnglish
Pages (from-to)229-247
Number of pages19
JournalAnnals of Regional Science
Volume40
Issue number2
DOIs
Publication statusPublished - 2006 Jun 1
Externally publishedYes

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)

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