Arbeitspapier

Geography and comparative advantage

This paper investigates the relation between agglomeration of economic activity and the pattern of specialization of countries. We develop a model encompassing a Ricardian comparative advantage, increasing returns to scale, product differentiation, monopolistic competition, trade costs, and factor mobility. Several interesting results arise. An endogenous relative increase in the size of one country makes this country less specialized in the homogeneous constant returns commodity and more specialized in the differentiated increasing returns IRS sectors; within the IRS industry, this country will become less specialized in the differentiated good in which it has a comparative advantage. Agglomeration occurs not only in large markets, but also in locations with a high average efficiency in the increasing return industry. Ceteris paribus, comparative advantage drives specialization, while absolute advantage drives agglomeration.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeiträge - Serie II ; No. 321

Klassifikation
Wirtschaft
Neoclassical Models of Trade
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Economic Integration
Oligopoly and Other Imperfect Markets
Size and Spatial Distributions of Regional Economic Activity
Thema
Agglomeration
Specialization
Ricardian comparative advantage
Monopolistic competition
Scale economies
Location
Internationaler Wettbewerb
Agglomerationseffekt
Arbeitsteilung
Standorttheorie
Skalenertrag
Wirtschaftsraum
Theorie

Ereignis
Geistige Schöpfung
(wer)
Ricci, Luca Antonio
Ereignis
Veröffentlichung
(wer)
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
(wo)
Konstanz
(wann)
1996

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Ricci, Luca Antonio
  • Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft

Entstanden

  • 1996

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