F.D. Puscaciu


THE CORE-PERIPHERY MODEL INCLUDING THE COMMERCIAL COSTS OF AGRICULTURAL GOOD

F.D. Puscaciu, Viorica Puscaciu

Abstract
The purpose of this paper is to implement in real world the core-periphery model or the model if Paul Krugman’s economic geography which proposed a congestion foundation of industrial activityin which agricultural activity was simplified to a maximum and a transport costs were ignored. Working methods used in this paper consist of the field theoretical approach in conjunction with mathematical modeling of the phenomenon – numerical simulation method, because the model is not solvable analytical, and graphical method, also. The results is precisely in the presentation of the impact of transport costs to agricultural goods on economic geography. By way of conclusion, we can see that using the transport costs does not alter the original model.

Key words: the core-periphery model, agglomeration equilibrium, dispersion equilibrium