Local Trade Networks and Spatially Persistent Unemployment

Nienke Oomes ()

International Trade from EconWPA

Abstract: This paper studies the effect of local trade networks on the spatial distribution of employment in a Cooper and John (1988) type model with effective demand externalities. It is shown that, if labor can be hired in continuous quantities, then the long run spatial distribution of employment is uniform, and independent of any trade network topology. When labor has binary support, however, local trade networks are shown to generate spatial unemployment clusters which can persist indefinitely.

Keywords: trade; networks; unemployment; local; interactions; cellular; automata (search for similar items in EconPapers)
JEL-codes: C63 C73 E24 F16 (search for similar items in EconPapers)
Date: 2002-11-19
Note: Type of Document - pdf; prepared on Macintosh; to print on HP/PostScript; pages: 63 ; figures: included
View list of references

Downloads: (external link)
http://129.3.20.41/eps/it/papers/0211/0211004.pdf (application/pdf)

Related works:
Journal Article: Local trade networks and spatially persistent unemployment (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpit:0211004

Access Statistics for this paper

More papers in International Trade from EconWPA
Series data maintained by EconWPA ().