Negative feedbacks in the economy and industrial location

S Brakman*, H Garretsen, R Gigengack, C vanMarrewijk, R Wagenvoort

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

30 Citations (Scopus)

Abstract

Incorporating regional asymmetry and negative feedbacks (congestion) in a model of economic geography and international trade shows that complete specialization of production at one location is unlikely. We identify an agglomerating force: the home market effect, and two spreading forces, competition for demand from immobile sectors of production and congestion. We demonstrate that negative feedbacks can explain the economic viability of small industrial regions observed in the real world. Simulations clarify the basic structure of the model.

Original languageEnglish
Pages (from-to)631-652
Number of pages22
JournalJournal of Regional Science
Volume36
Issue number4
DOIs
Publication statusPublished - Nov-1996

Keywords

  • RETURNS
  • HISTORY
  • TRADE

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