Migration and agglomeration with knowledge spillovers

Kyoko Hirose ()
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Kyoko Hirose: Graduate School of Economics, Osaka University

No 05-16, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: In this paper, a Grossman-Helpman-Romer-type endogenous growth model is developed with two regions in which there are mobile workers and linkage between consumption goods and differentiated intermediate goods. The economy has the potential to reach the following spatial configuration: full agglomeration, partial agglomeration, and segmented agglomeration. In perfect agglomeration, the innovation sector and intermediate goods sector agglomerate in one region. In partial agglomeration, intermediate goods firms partially agglomerate in the region where the innovation sector agglomerates perfectly. In segmented agglomeration, the innovation sector agglomerates in the region where both intermediate goods sector and final good sector do not agglomerate perfectly. In addition, we show the comparison of the welfare of skilled workers in each steady state. Not surprisingly, the welfare of the skilled in full agglomeration is always the highest. However, even though there are transportation costs of final good, the welfare in segmented agglomeration is not necessarily the lowest.

Keywords: knowledge spillovers; transportation costs; inter-regional trade (search for similar items in EconPapers)
JEL-codes: F43 O18 R11 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2005-06
New Economics Papers: this item is included in nep-dev, nep-geo, nep-sea and nep-ure
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Journal Article: MIGRATION AND AGGLOMERATION WITH KNOWLEDGE SPILLOVERS* (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0516

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