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How does heterogeneous spillover of knowledge affect economic geography? ——An extended local spillover model

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  • Xu, Xilei
  • Dong, Xuebing
  • Chi, Ruonan
  • Li, Jixia

Abstract

This study studies heterogeneous spillover of knowledge in a local spillover setting. We discuss how different levels of knowledge spillover affect economic geography. With the hypothesis of heterogeneous spillover of knowledge, the spillover effect still acts as a dispersion force. The structure of long-run equilibrium mostly depends on the extreme value of the knowledge spillover level among innovation branches. In the long-run equilibrium, innovation branches with a low level of knowledge spillover need more knowledge capital to avoid elimination. If the knowledge capital structures of the core area and periphery area are similar, the spillover effect will occupy the leading status. Periphery regions can break the catastrophic agglomeration through differential development.

Suggested Citation

  • Xu, Xilei & Dong, Xuebing & Chi, Ruonan & Li, Jixia, 2022. "How does heterogeneous spillover of knowledge affect economic geography? ——An extended local spillover model," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:soceps:v:83:y:2022:i:c:s0038012121001452
    DOI: 10.1016/j.seps.2021.101153
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    More about this item

    Keywords

    Spatial economics; Knowledge spillovers; Heterogeneities;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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