This survey paper notes that in addressing many economic questions relevant in a regional context spatial factors may not be the most critical element to capture. Instead, several issues can usefully be addressed from the perspective of general equilibrium models applied in international trade theory. That approach is reviewed briefly, particularly regarding the implications of mobile factors of production. Then, it is applied to an illustrative set of topics from regional analysis: the north-south wage gap, distributional consequences of environmental controls, regional taxation policies, economic base projections, problems of lagging regions, and transportation costs as determinants of regional production patterns.
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