Increasing Returns, Trade and the Regional Structure of Wages
利用墨西哥制造业数据检验了基于递增回报的贸易理论，发现贸易自由化后产业从墨西哥城向美墨边境转移，且区域工资随距产业中心距离增加而下降。
Trade theories based on increasing returns have two predictions for regional economies: employment concentrates in industry centres, and regional nominal wages are decreasing in transport costs to industry centres. I test these hypotheses using data on regional manufacturing in Mexico before and after trade liberalisation. Employment and wage patterns are consistent with the idea that market access matters for industry location. Under the closed economy, industry concentrated in Mexico City. Since trade reform, industry has relocated to the United States--Mexico border. Estimation results show that regional manufacturing wages are decreasing in distance from Mexico City and from the border.