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The Structure of Specialization and Trade in the Space Economy

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  • T Puu

    (Department of Economics, Umeå University, S-90187 Umeå, Sweden)

Abstract

A spatially extended production and exchange economy is considered. It is first established that specialization and trade arise even in the absence of increasing returns, comparative advantages, or immobile resources. Next, it is demonstrated that all trade in a multicommodity economy is transported along the same trajectories, which are determined by the land-rent gradient. Finally, applying the concept of structural stability to the land-rent gradient field, it is shown that the configuration of central places and their surrounding hinterlands must form a quadratic, not a hexagonal, pattern, where the specialization zones around each central place locally have von Thünen character.

Suggested Citation

  • T Puu, 1984. "The Structure of Specialization and Trade in the Space Economy," Environment and Planning A, , vol. 16(10), pages 1339-1347, October.
    • Handle: RePEc:sae:envira:v:16:y:1984:i:10:p:1339-1347
    DOI: 10.1068/a161339
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