A three-region NEG model with linear demand function.

We consider a three-region developing economy with poor transport infras- tructures. Two models are related to dierent stages of development: in the rst all regions are autarkic; in the second two of the regions begin to integrate with the third region still not accessible to trade. The properties of the two models are studied also considering the interplay between indus- try location and trade patterns. Dynamics of these models are described by two-dimensional piecewise smooth maps, characterized by multistability and complex bifurcation structure of the parameter space. We obtain analytical results related to stability of various xed points and illustrate several bi- furcation structures by means of two-dinemsional bifurcation diagrams and basins of coexisting attractors