We consider an economic geography model with two inter-regional proximity structures , one due to trade linkages and the other due to social interactions . We investigate how the network structure of social interactions, or the social proximity structure, affects the timing of endogenous agglomeration and the spatial distribution of workers across regions. Endogenous agglomeration emerges when inter-regional trade and/or social interactions incur high transportation costs, and the uniform dispersion occurs when these costs become negligibly small (i.e., when distance dies). In many-region geography, the network structure of social proximity emerges as the determinant of the geographical distribution of workers when trade becomes freer. If social proximity is governed by geographical distance (as in ground transportation) , a mono-centric concentration emerges . If geographically distant pairs of regions are ``socially close'' (due to, e.g., passenger transportation modes with strong distance economy such as regional airlines), then geographically multi-centric spatial distribution can be sustainable.
We consider an economic geography model with two inter-regional proximity structures : one governing goods trade and the other governing production externalities across regions . We investigate how the introduction of the latter affects the timing of endogenous agglomeration and the spatial distribution of workers across regions. As transportation costs decline, the economy undergoes a progressive dispersion process. Mono-centric agglomeration emerges when inter-regional trade and/or production externalities incur high transportation costs, while uniform dispersion occurs when these costs become negligibly small (i.e., when distance dies). In multi-regional geography, the network structure of production externalities can determine the geographical distribution of workers as economic integration increases. If production externalities are governed solely by geographical distance , a mono-centric spatial distribution emerges in the form of suburbanization. However, if geographically distant pairs of regions are connected through tight production linkages, multi-centric spatial distribution can be sustainable.
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, one due to trade linkages
: one governing goods trade
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due to social interactions
governing production externalities across regions
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network structure of social interactions, or the social proximity structure,
introduction of the latter
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Endogenous
As transportation costs decline, the economy undergoes a progressive dispersion process. Mono-centric
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social interactions
production externalities
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and the
while
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many-region
multi-regional
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social proximity emerges as the determinant of the
production externalities can determine the
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when trade becomes freer. If social proximity is governed
as economic integration increases. If production externalities are governed solely
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(as in ground transportation)
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concentration emerges . If
spatial distribution emerges in the form of suburbanization. However, if
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``socially close'' (due to, e.g., passenger transportation modes with strong distance economy such as regional airlines), then geographically
connected through tight production linkages,