Spatial Agglomeration Dynamics

Danny Quah ()

No 3208, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simultaneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete isolated points but instead a dynamically-fluctuating, smooth spatial distribution. Spatial inequality is a Cass-Koopmans saddlepath, and the global distribution of economic activity converges towards egalitarian growth. Equality is stable but spatial inequality is needed to attain it.

Keywords: cluster; continuous space; convergence; distribution dynamics; globalization; growth; Knowledge; saddlepath dynamics; spatial inequality; spatial spillovers (search for similar items in EconPapers)
JEL-codes: D30 O10 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ure
Date: 2002-02
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Journal Article: Spatial Agglomeration Dynamics (2002)
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