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Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs

Toshihiro Okubo and Rikard Forslid

No 2018-019, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: This paper introduces spatial sorting of heterogeneous entrepreneurs (firms) in the "foot-loose entrepreneur" trade and geography model. The model generates agglomeration from a uniform space contrary to the "footloose capital" model. The model also generates spatial sorting in reverse productivity order with the least productive entrepreneur being the first to relocate.

Keywords: Agglomeration; Heterogeneous firms; Trade liberalization (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 R12 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2018-12-06
New Economics Papers: this item is included in nep-geo, nep-int and nep-sbm
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Working Paper: Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2018-019

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