Local trade networks and spatially persistent unemployment

Nienke Oomes ()

Journal of Economic Dynamics and Control, 2003, vol. 27, issue 11, 2115-2149

Abstract: This paper studies the effects of local trade networks on the spatial distribution of employment in a model that allows for effective demand externalities as well as home bias. 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 found to generate spatial unemployment clusters which can persist indefinitely.

Keywords: Trade; Networks; Unemployment; Local interactions; Cellular automata (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Local trade networks and spatially persistent unemployment (2003)
Working Paper: Local Trade Networks and Spatially Persistent Unemployment (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:27:y:2003:i:11:p:2115-2149

DOI: 10.1016/S0165-1889(02)00118-5

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