How does heterogeneous spillover of knowledge affect economic geography? ——An extended local spillover model

Xilei Xu, Xuebing Dong, Ruonan Chi and Jixia Li

Socio-Economic Planning Sciences, 2022, vol. 83, issue C

Abstract: This study studies heterogeneous spillover of knowledge in a local spillover setting. We discuss how different levels of knowledge spillover affect economic geography. With the hypothesis of heterogeneous spillover of knowledge, the spillover effect still acts as a dispersion force. The structure of long-run equilibrium mostly depends on the extreme value of the knowledge spillover level among innovation branches. In the long-run equilibrium, innovation branches with a low level of knowledge spillover need more knowledge capital to avoid elimination. If the knowledge capital structures of the core area and periphery area are similar, the spillover effect will occupy the leading status. Periphery regions can break the catastrophic agglomeration through differential development.

Keywords: Spatial economics; Knowledge spillovers; Heterogeneities (search for similar items in EconPapers)
JEL-codes: O18 P25 R13 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:83:y:2022:i:c:s0038012121001452

DOI: 10.1016/j.seps.2021.101153

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