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Agglomeration Economies and Formation of Skill


  • Nobuaki Hamaguchi

    (Kobe University)


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.

Suggested Citation

  • Nobuaki Hamaguchi, 2007. "Agglomeration Economies and Formation of Skill," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 51, pages 33-47, February.
  • Handle: RePEc:kob:review:feb2007::v:51:p:33-47

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    knowledge spillover; agglomeration; core-periphery; human capital;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


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