The Multiregional Core-periphery Model: The Role of the Spatial Topology

Abstract

We use the multiregional core-periphery model of the new economic geography to analyze and compare the agglomeration and dispersion forces shaping the location of economic activity for a continuum of network topologies characterized by their degree of centrality, and comprised between two extremes represented by the homogenous (ring) and the heterogeneous (star) configurations. Resorting to graph theory, we systematically extend the analytical tools and graphical representations of the coreperiphery model for alternative spatial configurations, and study the stability of the alternative equilibria in terms of the sustain and break points. We study new phenomena such as the absence of any stable distribution of economic activity for some range of transport costs, and the infeasibility of the dispersed equilibrium in the heterogeneous space, resulting in the introduction of the concept pseudo flat-earth as a long run-equilibrium corresponding to an uneven distribution of economic activity between regions.

The Footloose Entrepreneur model with a finite number of equidistant regions

“…Additionally, the impact of the number of regions could depend on (or influence) the relative location of regions in space. This means studies which have focused on the role of space heterogeneity under a limited number of regions (e.g., Barbero and Zofío, 2016) may be complementary to our own.…”

“…Tabuchi and Thisse (2011) studied the rise of a hierarchical system of central places in a multi-location space. Barbero and Zofío (2016) considered different network topologies in order to study how the interplay between centripetal and centrifugal forces change according to the heterogeneity of location space. They showed that more heterogeneous configurations enforce the likelihood of agglomeration in regions with higher centrality; i.e., those that are relatively better located.…”

“…Our analysis focused on local stability of equilibria considering an arbitrary number of equidistant regions. It would be interesting to understand the interplay between variation in the number of regions and other factors shaping the space economy, such as the role of different spatial topologies studied by Barbero and Zofío (2016). This is left for future work.…”

A propos Brexit: on the breaking up of integration areas – an NEG analysis

“…They use group theoretic bifurcation theory in order to obtain analytical results. However, these studies are also complemented by numerical simulations (see also Barbero & Zofío, 2016). In the present paper, we primarily present simulation results complemented by intuitive explanations of the underlying economic forces.…”

Balancing Population Distribution and Sustainable Economic Development in Yangtze River Economic Belt of China

“…Based on New Geo-Economics and related research [27][28][29][30][31][32][33], we can also understand the spatial inconsistency of population distribution and economic development from the perspective of resource allocation. In regional economic development, the dominant powers over the allocation of resources include market mechanism and government mechanism.…”