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Migration And Agglomeration With Knowledge Spillovers




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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Suggested Citation

  • Kyoko Hirose, 2008. "Migration And Agglomeration With Knowledge Spillovers," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 459-497.
  • Handle: RePEc:bla:jecrev:v:59:y:2008:i:4:p:459-497

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    References listed on IDEAS

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    Cited by:

    1. Albert de Vaal & Tom Gosens, 2010. "Social Ties, Knowledge Spillovers and Regional Convergence," DEGIT Conference Papers c015_023, DEGIT, Dynamics, Economic Growth, and International Trade.

    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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