Land Endowment,Intersectoral Labor Mobility,and Economic Geography

The distribution of industries is studied in a general equilibrium model in which firms producing manufactured products engage in oligopolistic competition. The agricultural product is produced by land and labor and there is intersectoral labor mobility between the agricultural sector and the manufacturing sector. Results are derived analytically. When worker units are divisible, concentration of all workers in one region is not stable. The role of land in the production of the agricultural product is important in affecting the distribution of industries.