The effect of capital flow on the agglomeration evolution of footloose entrepreneurs
Ching-mu Chen ()
Additional contact information
Ching-mu Chen: Zhongnan University of Economics and Law
Asia-Pacific Journal of Regional Science, 2019, vol. 3, issue 3, 761-791
Abstract To answer whether capital mobility exacerbates or dampens the agglomerative tendency of footloose entrepreneurs, this paper incorporates a footloose capital with a footloose-entrepreneur manufacturing industry based on a tractable analytical structure with two identical regions. The model shows that these two sectors interact with each other, and features five types of equilibrium configurations. Most interestingly, this paper finds that the mobility of physical capital plays a stabilizing role in the catastrophic agglomeration caused by footloose entrepreneurs.
Keywords: Footloose capital; Footloose entrepreneur; Pitchfork bifurcation; Agglomeration evolution; New economic geography (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 F22 R12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s41685-019-00109-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:3:y:2019:i:3:d:10.1007_s41685-019-00109-8
Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685
Access Statistics for this article
Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano
More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla ().