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
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
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Working Paper: Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs (2018)
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