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Agglomeration Economies and Formation of Skill

  • Nobuaki Hamaguchi

    (Kobe University)

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    This study pays attention to the role of regional policy in promoting skilled worker formation taking advantage of knowledge spillover. Pro-agglomeration policies to create core-periphery structure might be sustained in early stage of development due to insufficient scale economies. In later stage, excessive concentration diseconomies form congestion may prevail and the growth may be disturbed, leading to pro-dispersion argument. The latter, however, should be combined with policies of interconnection such that knowledge spillover keeps taking effects through interaction of skilled workers across the geographical distance.

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    Article provided by Research Institute for Economics & Business Administration, Kobe University in its journal Kobe Economic & Business Review.

    Volume (Year): 51 (2007)
    Issue (Month): (February)
    Pages: 33-47

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    Handle: RePEc:kob:review:feb2007::v:51:p:33-47
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