【摘要】This paper develops a simple model that shows how a country can endogenously become differentiated into an industrialized core and an agricultural periphery. In order to realize scale economies while minimizing transport costs, manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing. Emergence of a core-periphery pattern depends on transportation costs, economies of scale, and the share of manufacturing in national income.

【文献来源】Krugman P. Increasing returns and economic geography[J]. Journal of political economy, 1991, 99(3): 483-499.