A harmonization of first and second natures

Pierre M. Picard, Dao Zhi Zeng

Research output: Contribution to journalArticlepeer-review

16 Citations (Scopus)


This paper investigates the joint impact of the first nature and the second nature forces on industry location. Toward this aim, we develop a two-region new economic geography model where local factor congestion and location advantages compete with demand linkages and product market crowding. In particular, we study the case of absolute location advantage in a single industry model and the case of comparative advantages in a two-industry model. We characterize the structure of industries and discuss the possibilities of catastrophic changes, endogenous industrial asymmetries and specialization. We find that absolute location advantage are associated with a smooth agglomeration process and comparative advantages with a catastrophic process.

Original languageEnglish
Pages (from-to)973-994
Number of pages22
JournalJournal of Regional Science
Issue number5
Publication statusPublished - 2010 Dec


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