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Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs

Rikard Forslid () and Toshihiro Okubo ()

No 13381, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper introduces spatial sorting of heterogeneous entrepreneurs (firms) in the 'footloose entrepreneur' trade and geography model. The model generates agglomeration from a uniform space contrary to the 'footloose capital' model. The model also generates spatial sorting in reverse productivity order with the least productive entrepreneur being the first to relocate.

Keywords: agglomeration; Heterogeneous Firms; trade liberalization (search for similar items in EconPapers)
JEL-codes: F12 F15 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-int, nep-sbm and nep-ure
Date: 2018-12
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