traditionally seen only in terms of trade costs, many aspects of economic integration are more naturally viewed as lowering the cost of trading information rather than goods, i.e. as reducing the extent to which learning externalities are localised. Raising learning spillovers is stabilising, so integration may encourage geographic dispersion (the traditional result is that integration tends to encourage agglomeration). This may be useful for evaluating real-world regional policies e.g. subsidisation of universities, technical colleges and high-technology industrial parks in disadvantaged regions that are aimed at combating the localisation of learning externalities. Finally we show that agglomeration of industry is favourable to growth and that this growth effect can mitigate, but not reverse, losses suffered by residents of the periphery when catastrophic agglomeration occurs.
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Length: Date of creation: Jan 1999 Date of revision: Handle: RePEc:nbr:nberwo:6899
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Robert J. Barro & Paul M. Romer, 1991.
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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.)
Baldwin, Richard E. & Martin, Philippe, 2004.
"Agglomeration and regional growth,"
Handbook of Regional and Urban Economics,
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