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Agglomeration Economies: A Bridge between the New Economic Geography and Malthusian Theory

Author

Listed:
  • Massimiliano Agovino

    (“G. D’Annunzio” University -Department of Economics, Chieti-Pescara)

  • Antonio Garofalo

    (“Parthenope” University - Department of Economic and Legal Studies, Naples)

Abstract

The paper aims to build a bridge between the New Economic Geography and Malthusian theory. Both theories seek to explain the phenomenon of agglomeration processes: Malthusian theory through first nature effects; the New Economic Geography through second nature effects. Using a methodology based on analysis of variance applied to a panel data of Italian Local Labour Systems we reveal that although the gross second nature effect plays a major role in bringing about the agglomeration process, the net second nature effect appears relatively unimportant. By contrast, both first nature effects and the combined effect of the two forces are very important.

Suggested Citation

  • Massimiliano Agovino & Antonio Garofalo, 2013. "Agglomeration Economies: A Bridge between the New Economic Geography and Malthusian Theory," Rivista di Politica Economica, SIPI Spa, issue 3, pages 117-136, July-Sept.
    • Handle: RePEc:rpo:ripoec:y:2013:i:3:p:117-136
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    More about this item

    Keywords

    size and spatial distributions of economic activity; demography; income; economic development; economic growth and aggregate productivity.;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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