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Princeton, 2008Economic Geography
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Foreword xiii Acknowledgments xxiv I Facts and Theories 1 1 Spatial Inequalities: A Brief Historical Overview 3 1.1 The Space-Economy and the Industrial Revolution 4 1.2 Regional Disparities: When an Ancient Phenomenon Becomes Measurable 12 1.3 Concluding Remarks 25 2 Space in Economic Thought 26 2.1 Economics and Geography: A Puzzling History of Reciprocal Ignorance 27 2.2 Integrating Space in Economics: The Main Attempts 30 2.3 The Burden of Modeling Constraints 31 2.4 The Breakdown of the Competitive Paradigm in a Spatial Economy 35 2.5 What Are the Alternative Modeling Strategies? 41 2.6 Increasing Returns and Transport Costs: The Basic Trade-Off of Economic Geography 43 2.7 Concluding Remarks 48 II Space, Trade, and Agglomeration 51 3 Monopolistic Competition 53 3.1 The Dixit–Stiglitz Approach 55 3.2 Monopolistic Competition: A Linear Setting 71 3.3 Concluding Remarks 79 3.4 Related Literature 80 4 Interregional Trade and Market Size 81 4.1 The Dixit–Stiglitz–Krugman Model of Trade 82 4.2 The Home-Market Effect 89 x Contents 4.3 Concluding Remarks 98 4.4 Related Literature 100 5 Gravity and Trade Costs 101 5.1 The Gravity Model 103 5.2 Trade Costs 115 5.3 Concluding Remarks 127 5.4 Related Literature 127 6 The Core–Periphery Structure 130 6.1 Increasing Returns and Industrialization 133 6.2 Regional Disparities: The Krugman Model 137 6.3 The Krugman Model Revisited 160 6.4 Concluding Remarks 162 6.5 Related Literature 164 7 Intermediate Goods and the Evolution of Regional Disparities 166 7.1 The Role of Intermediate Goods 169 7.2 The Spatial Distribution of the Manufacturing Sector 176 7.3 The Evolution of Regional Disparities 185 7.4 Concluding Remarks 191 7.5 Related Literature 192 8 The Bell-Shaped Curve of Spatial Development 194 8.1 A Linear Core–Periphery Model 196 8.2 When Does the Bell-Shaped Curve Arise? 207 8.3 Concluding Remarks 221 8.4 Related Literature 222 9 Spatial Competition 223 9.1 Spatial Duopoly à la Hotelling 224 9.2 Spatial Oligopoly à la Cournot 238 9.3 Concluding Remarks 250 9.4 Related Literature 251 III Breadth and Determinants of Spatial Concentration 253 10 Measuring Spatial Concentration 255 10.1 The Properties of an Ideal Index of Spatial Concentration 256 10.2 Spatial Concentration Indices 259 10.3 Indices Accounting for Industrial Concentration 266 10.4 The Duranton–Overman Continuous Approach 269 10.5 Concluding Remarks 274 10.6 Related Literature 274 11 Determinants of Spatial Concentration and Local Productivity 276 11.1 The Determinants of Spatial Concentration 277 11.2 The Determinants of Local Productivity 283 Contents xi 11.3 Concluding Remarks 300 11.4 Related Literature 301 12 The Empirics of Economic Geography 302 12.1 A General Framework 303 12.2 Location of Firms 307 12.3 Home-Market Effect 314 12.4 Factor Prices and Economic Geography 321 12.5 Migrations 329 12.6 The Stability of Spatial Patterns 332 12.7 Concluding Remarks 340 12.8 Related Literature 342 13 Theory with Numbers 343 13.1 Predictions Based on the Dixit–Stiglitz–Krugman Model 345 13.2 Simulations in an Estimated Model of the French Space-Economy 356 13.3 Concluding Remarks 363 13.4 Related Literature 364 14 Concluding Remarks 365 14.1 The Paradox of the Global Village 365 14.2 The Objective of Economic Geography 367 14.3 What Have We Learned? 368 14.4 Where Next? 374 References 379 Index 397 |
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