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Spatial Agglomeration Dynamics

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Author Info
Danny Quah

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Abstract

This paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simulataneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete isolated points but instead a dynamically-fluctuating, smotth spatial distribution. Spatial inequality is a Cass-Koopmans saddlepath, and the global distribution of economic activity converges towards egalitarian growth. Equality is stable but spatial inequality is needed to attain it.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number 0521.

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Date of creation: Mar 2002
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Handle: RePEc:cep:cepdps:0521

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Related research
Keywords: cluster continuous space convergence distribution dynamics growth knowledge saddlepath dynamics spatial spillovers spatial inequality

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Find related papers by JEL classification:
D30 - Microeconomics - - Distribution - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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References listed on IDEAS
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  1. Alex Bryson & Rafael Gomez & Morley Gunderson & Noah Meltz, 2002. "Youth-Adult Differences in the Demand for Unionisation: Are American, British, and Canadian Workers All That Different?," CEP Discussion Papers 0515, Centre for Economic Performance, LSE. [Downloadable!]
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  2. Overman, Henry G. & Redding, Stephen J & Venables, Anthony J., 2001. "The Economic Geography of Trade Production and Income: A Survey of Empirics," CEPR Discussion Papers 2978, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Dale T. Mortensen & Christopher A. Pissarides, 2002. "Taxes, Subsidies and Equilibrium Labor Market Outcomes," CEP Discussion Papers 0519, Centre for Economic Performance, LSE. [Downloadable!]
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  4. Dilip Mookherjee & Debraj Ray, 2002. "Is Equality Stable?," American Economic Review, American Economic Association, vol. 92(2), pages 253-259, May. [Downloadable!] (restricted)
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  5. D Quah, 1996. "Convergence," CEP Discussion Papers 0290, Centre for Economic Performance, LSE. [Downloadable!]
  6. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December. [Downloadable!] (restricted)
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  8. Rafael Gomez & Morley Gunderson & Noah Meltz, 2001. "From ‘Playstations’ to ‘Workstations’: Youth Preferences for Unionisation in Canada," CEP Discussion Papers 0512, Centre for Economic Performance, LSE. [Downloadable!]
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  10. Kiminori Matsuyama, 2002. "Explaining Diversity: Symmetry-Breaking in Complementarity Games," Discussion Papers 1336, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  12. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December. [Downloadable!] (restricted)
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  18. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, vol. 107(440), pages 47-66, January. [Downloadable!] (restricted)
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  21. Richard Dickens & David T. Ellwood, 2001. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," NBER Working Papers 8253, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Danilo Igliori, 2008. "Deforestation, Growth and Agglomeration Effects: Evidence from Agriculture in the Brazilian Amazon," Environmental Economy and Policy Research Working Papers 29.2008, University of Cambridge, Department of Land Economics, revised 2008. [Downloadable!]
    Other versions:
  2. Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association. [Downloadable!]
  3. Baldwin, Richard & Martin, Philippe, 2003. "Agglomeration and Regional Growth," CEPR Discussion Papers 3960, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA. [Downloadable!]
  5. Miranowski, John & Monchuck, Daniel C., 2004. "Spatial Labor Markets and Technology Spillovers - Analysis from the US Midwest," Staff General Research Papers 12196, Iowa State University, Department of Economics. [Downloadable!]
  6. Keller, Wolfgang & Shiue, Carol Hua, 2003. "The Origins of Spatial Interaction," CEPR Discussion Papers 4138, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Gomes, Orlando, 2006. "Space, growth and technology: an integrated dynamic approach," MPRA Paper 2846, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  8. Luca, Spinesi, 2005. "Vertical and Horizontal Innovation : Effects of Globalization and Migration on Inequality, Growth and Human Capital Accumulation," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2005028, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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