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On the new economic geography of a multicone world
Author(s) -
Commendatore P.,
Kubin I.,
Mossay P.
Publication year - 2018
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12312
Subject(s) - comparative advantage , economic geography , economics , productivity , distribution (mathematics) , market size , international trade , macroeconomics , international economics , mathematics , mathematical analysis
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 long‐term fluctuations in the spatial distribution of industry by relying on a discrete‐time framework.