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This paper presents an economic geography model we use to investigate transport costs as a cause of regional inequalities. We perform a structural estimation of this model for 64 sectors simultaneously using a new dataset on generalized transport costs between the 341 French Employment Areas. Transport costs, intermediate inputs and geography play a critical role in the concentration pattern of economic activities. We provide simulations of local production conditions. Large concentration incentives exist in France, possibly inducing the emergence in the long-run of a monocentric core-periphery structure. Besides, in the short-run, a transport costs decline reduces concentration at the country level, but it increases inequalities in a large number of French regions. Classification JEL: F1, O1, R3, R4