Growth and Agglomeration
Philippe Martin and
Gianmarco Ottaviano
No 1529, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
This paper presents a model in which growth and geographic agglomeration of economic activities are mutually self reinforcing processes. Industrial agglomeration in one location spurs growth because it reduces the cost of innovation in that location through a pecuniary externality due to transaction costs. Growth fosters agglomeration because as the sector at the origin of innovation expands, new firms tend to locate close to this sector. The model can be interpreted as illustrating one mechanism behind the emergence of cities seen as centres for production and innovation, and is consistent with the episodes of simultaneous increases in growth rates and spatial agglomeration.
Keywords: Agglomeration; Cities; Endogenous Growth; Technological Progress (search for similar items in EconPapers)
JEL-codes: O31 R11 R12 (search for similar items in EconPapers)
Date: 1996-11
References: Add references at CitEc
Citations: View citations in EconPapers (39)
Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1529 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Journal Article: Growth and Agglomeration (2001)
Working Paper: Growth and Agglomeration (2001)
Working Paper: Growth and Agglomeration (2001)
Working Paper: Growth and Agglomeration (2001)
Working Paper: Growth and Agglomeration (1996) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1529
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1529
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().