16 Macrosystem demoeconomic model with regional localization of sectors (branches) Ns − MSDEM
In a real demoeconomic system, intersectoral exchange of products plays an important role. Heterogeneity of an economic space leads to the following. Even taking into account transport costs, one benefits by manufacturing products in distant regions if the corresponding labour force and raw materials appear cheaper. We will model this situation, gradually increasing the level of detail. The current chapter studies a multi-sector economy; however, each sector is localized in an appropriate region. Therefore, an economic sector (i.e., a product manufactured by the latter) and a corresponding region appear formally identical, and spatial exchange can ...
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