Quotation Commendatore, Pasquale, Kubin, Ingrid, Mossay, Pascal, Sushko, Iryna. 2017. The role of centrality and market size in a four-region asymmetric new economic geography model. Journal of Evolutionary Economics 27 (5), 1095-1131.




In this paper, we put forward a four-region new economic geography footloose entrepreneur model in which regions are differentiated by their size and their geographical position along a line. There are two distinct trade blocs, each of them consisting of a pair of regions. Direct and indirect trade between all regions is allowed, whereas factor mobility can occur only between regions of the same bloc. Given this more general geographical structure, as compared to previous studies, we are able to disentangle two manifestations of the market access effect: firms can take advantage of locating both in a more central region (centrality effect) and/or in a bigger region (local market size effect). The model is able to generate a plethora of long-term outcomes, including four equilibria with full agglomeration in each trade bloc that can be ranked by factor owners. Equilibria where industry is dispersed or agglomerated in a bloc and dispersed in the other one, are also possible as well as more complex attractors. Finally, by allowing direct and indirect trade between regions, we are able to look at the effect of trade integration on transit traffic by evaluating in a preliminary analysis the consequences of policies aiming at limiting transport volumes in a model with shifting industry


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Evolutionary Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new VW-D
Language English
Title The role of centrality and market size in a four-region asymmetric new economic geography model
Volume 27
Number 5
Year 2017
Page from 1095
Page to 1131
Reviewed? Y
DOI http://dx.doi.org/10.1007/s00191-017-0540-6
JEL JEL: C62, F12, F2, R12


COST Action IS1104: The EU in the new economic complex geography
Kubin, Ingrid (Details)
Commendatore, Pasquale (University of Naples Federico II, Italy)
Mossay, Pascal (Newcastle University, United Kingdom)
Sushko, Iryna (National Academy of Sciences of Ukraine, Ukraine)
Department of Economics (Kubin) (Details)
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