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Author(s): leite, v
castro, sbsd
correia-da-silva, j
Title: A third sector in the core-periphery model: non-tradable goods
Issue Date: 2013
Abstract: We extend an analytically solvable core-periphery model by introducing a monopolistically competitive sector of non-tradable goods that is mobile across regions. We find that when the elasticity of substitution among non-tradable goods is very low, there is agglomeration of all the production (of both tradable and non-tradable goods). When the elasticity of substitution among non-tradable goods is sufficiently high ("no black-hole" condition), then there is symmetric dispersion of all the production, if trade costs are high; or full agglomeration of the production of tradable goods with partial agglomeration of the production of non-tradable goods, if trade costs are low.
Subject: Economia e gestão
Economics and Business
Scientific areas: Ciências sociais::Economia e gestão
Social sciences::Economics and Business
Document Type: Artigo em Revista Científica Internacional
Rights: openAccess
Appears in Collections:FEP - Artigo em Revista Científica Internacional

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