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Trade Policy and Urban-Rural Inequalities In LDCS: A Simulation Experiment With A New Economic Geography Model

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  • Ayele Gelan

Abstract

The new economic geography model approach is used to model the relationships between trade policy and spatial agglomeration of production in the context of a small open developing economy. A general equilibrium model with interactions between centripetal forces and centrifugal forces that determine linkages between urban and rural regions is constructed [Paper presented at International Conference on Globalisation and Development].

Suggested Citation

  • Ayele Gelan, 2007. "Trade Policy and Urban-Rural Inequalities In LDCS: A Simulation Experiment With A New Economic Geography Model," Working Papers id:1068, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1068
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    References listed on IDEAS

    as
    1. Puga, Diego & Venables, Anthony J, 1999. "Agglomeration and Economic Development: Import Substitution vs. Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 109(455), pages 292-311, April.
    2. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    3. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    4. Diego Puga, 1994. "The Dynamics of Urbanisation," CEP Discussion Papers dp0212, Centre for Economic Performance, LSE.
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