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Migration and agglomeration with knowledge spillovers

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  • Kyoko Hirose

    ()
    (Graduate School of Economics, Osaka University)

Abstract

In this paper, a Grossman-Helpman-Romer-type endogenous growth model is developed with two regions in which there are mobile workers and linkage between consumption goods and differentiated intermediate goods. The economy has the potential to reach the following spatial configuration: full agglomeration, partial agglomeration, and segmented agglomeration. In perfect agglomeration, the innovation sector and intermediate goods sector agglomerate in one region. In partial agglomeration, intermediate goods firms partially agglomerate in the region where the innovation sector agglomerates perfectly. In segmented agglomeration, the innovation sector agglomerates in the region where both intermediate goods sector and final good sector do not agglomerate perfectly. In addition, we show the comparison of the welfare of skilled workers in each steady state. Not surprisingly, the welfare of the skilled in full agglomeration is always the highest. However, even though there are transportation costs of final good, the welfare in segmented agglomeration is not necessarily the lowest.

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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 05-16.

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Length: 48 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:osk:wpaper:0516

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Keywords: knowledge spillovers; transportation costs; inter-regional trade;

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  1. Diego Puga, 1996. "The Spread of Industry: Spatial Agglomeration in Economic Development," CEP Discussion Papers dp0279, Centre for Economic Performance, LSE.
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  12. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 630-40, June.
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Cited by:
  1. Albert de Vaal & Tom Gosens, 2010. "Social Ties, Knowledge Spillovers and Regional Convergence," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c015_023, DEGIT, Dynamics, Economic Growth, and International Trade.

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