Agglomeration in the periphery

Matti Sarvimäki ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: i. This discussion paper is a completely revised version of SERCDP0047, published April 2010. This paper argues that agglomeration externalities are important even in the rural periphery. The analysis focuses on the forced relocation of more than a tenth of the Finnish population after World War II. Using the details of the resettlement policy to construct instrumental variables for wartime population growth rate, I find that an exogenous increase in municipality's population had a positive effect on later population growth, industrialization and real wages. These findings are consistent with the presence of agglomeration externalities and inconsistent with other popular explanations for the spatial distribution of economic activity.

Keywords: agglomeration externalities; natural advantages; migration (search for similar items in EconPapers)
JEL-codes: J61 N94 R12 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2011-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://eprints.lse.ac.uk/57857/ Open access version. (application/pdf)

Related works:
Working Paper: Agglomeration in the Periphery (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:57857

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