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Spatial Agglomeration Dynamics

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  • Danny Quah

Abstract

This paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simulataneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete isolated points but instead a dynamically-fluctuating, smotth spatial distribution. Spatial inequality is a Cass-Koopmans saddlepath, and the global distribution of economic activity converges towards egalitarian growth. Equality is stable but spatial inequality is needed to attain it.

Suggested Citation

  • Danny Quah, 2002. "Spatial Agglomeration Dynamics," CEP Discussion Papers dp0521, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0521
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    File URL: http://cep.lse.ac.uk/pubs/download/DP0521.pdf
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    References listed on IDEAS

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    1. Nickell, Stephen & Nunziata, Luca & Ochel, Wolfgang & Quintini, Glenda, 2001. "The Beveridge curve, unemployment and wages in the OECD from the 1960s to the 1990s - preliminary version," LSE Research Online Documents on Economics 20113, London School of Economics and Political Science, LSE Library.
    2. Feyrer James D, 2008. "Convergence by Parts," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-35, July.
    3. Editors : & David Marsden & Hugh Stephenson, 2001. "Labour Law and Social Insurance in the New Economy: A Debate on the Supiot Report," CEP Discussion Papers dp0500, Centre for Economic Performance, LSE.
    4. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December.
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    Citations

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    Cited by:

    1. Klaus Desmet & Esteban Rossi-Hansberg, 2014. "Spatial Development," American Economic Review, American Economic Association, vol. 104(4), pages 1211-1243, April.
    2. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Spatial externalities and agglomeration in a competitive industry," Journal of Economic Dynamics and Control, Elsevier, vol. 42(C), pages 143-174.
    3. Gani Aldashev & Serik Aldashev & Timoteo Carletti, 2014. "On Convergence in the Spatial AK Growth Models," Papers 1401.4887, arXiv.org.
    4. Chincarini, Ludwig & Asherie, Neer, 2008. "An analytical model for the formation of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 252-270, May.
    5. Ng, Linda Fung-Yee & Tuan, Chyau, 2006. "Spatial agglomeration, FDI, and regional growth in China: Locality of local and foreign manufacturing investments," Journal of Asian Economics, Elsevier, vol. 17(4), pages 691-713, October.
    6. Giorgio Fabbri, 2015. "Ecological barriers and convergence: a note on geometry in spatial growth models," Working Papers hal-01159253, HAL.
    7. Matthias Cinyabuguma & Virginia McConnell, 2009. "Urban Growth Externalities and Neighborhood Incentives: Another Cause of Urban Sprawl?," UMBC Economics Department Working Papers 09-106, UMBC Department of Economics.
    8. Orlando Gomes, 2007. "Space, growth and technology: an integrated dynamic approach," Studies in Economics and Finance, Emerald Group Publishing, vol. 24(4), pages 248-265, October.
    9. Zakaria Babutsidze & Robin Cowan, 2014. "Showing or telling? Local interaction and organization of behavior," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 151-181, October.
    10. Anastasios Xepapadeas, "undated". "Diffusion and Spatial Aspects," DEOS Working Papers 1232, Athens University of Economics and Business.
    11. Giorgio Fabbri, 2014. "Ecological Barriers and Convergence: A Note on Geometry in Spatial Growth Models," Documents de recherche 14-05, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    12. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Optimal agglomerations in dynamic economics," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 1-15.
    13. Fabbri, Giorgio, 2016. "Geographical structure and convergence: A note on geometry in spatial growth models," Journal of Economic Theory, Elsevier, vol. 162(C), pages 114-136.
    14. Philip Cooke & Dafna Schwartz, 2008. "Regional Knowledge Economies: An Eu-Uk And Israel Perspective," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 178-192, April.
    15. Anastasios Xepapadeas, 2010. "Modeling complex systems," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 181-191, November.
    16. Keller, Wolfgang & Shiue, Carol H., 2007. "The origin of spatial interaction," Journal of Econometrics, Elsevier, vol. 140(1), pages 304-332, September.
    17. Schwartz Dafna & Bar-El Raphael & Malul Miki, 2008. "A Joint Virtual Advanced Technology Incubator - A New Pattern of Israeli-Palestinian Economic Cooperation," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(2), pages 1-19, July.
    18. Klaus Desmet & Esteban Rossi-Hansberg, 2010. "On Spatial Dynamics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 43-63.
    19. HAEDO, Christian & MOUCHART , Michel & ,, 2013. "Specialized agglomerations with areal data: model and detection," CORE Discussion Papers 2013060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    20. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA.
    21. Tuan, Chyau & Ng, Linda Fung-Yee, 2007. "The place of FDI in China's regional economic development: Emergence of the globalized delta economies," Journal of Asian Economics, Elsevier, vol. 18(2), pages 348-364, April.
    22. Mossay, Pascal, 2006. "Stability of spatial adjustments across local exchange economies," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 431-449, July.

    More about this item

    Keywords

    cluster; continuous space; convergence; distribution dynamics; growth; knowledge; saddlepath dynamics; spatial spillovers; spatial inequality;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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