Structural Change and Growth in a NEG model
This paper presents a New Economic Geography model of structural change, agglomeration and growth. By assuming the same non-homothetic preference structure as Murata (2008), we obtain similar results in that a progressive reduction of trade costs allows the economy to pass from a pre-industrialized to an industrialized stage and then, within the latter, from a dispersed to an urbanized regime. However, the introduction of capital accumulation and the dynamic setting of our model open the door to a richer set of implications. First, an additional stage is introduced as, for some intermediate values of trade costs, a multiple equilibria regime emerges with the symmetric and the core-periphery equilibria stable at the same time. Second, the introduction of non-homotheticity introduces a new channel through which growth is affected by trade costs and agglomeration. In particular, integration is always growth-enhancing while agglomeration is growth-detrimental.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.crenos.unica.it/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- F. Cerina & F. Mureddu, 2008.
"Agglomeration and Growth with Endogenous Expenditure Shares,"
Working Paper CRENoS
200820, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Fabio Cerina & Francesco Mureddu, 2012. "Agglomeration And Growth With Endogenous Expenditure Shares," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 324-360, 05.
- Daron Acemoglu & Veronica Guerrieri, 2006.
"Capital Deepening and Non-Balanced Economic Growth,"
NBER Working Papers
12475, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Veronica Guerrieri, 2006. "Capital Deepening and Non-Balanced Economic Growth," 2006 Meeting Papers 207, Society for Economic Dynamics.
- F. Cerina & F. Mureddu, 2009.
"Is Agglomeration really good for Growth? Global Efficiency, Interregional Equity and Uneven Growth,"
Working Paper CRENoS
200913, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Cerina, Fabio & Mureddu, Francesco, 2014. "Is agglomeration really good for growth? Global efficiency, interregional equity and uneven growth," Journal of Urban Economics, Elsevier, vol. 84(C), pages 9-22.
- Fabio Cerina & Francesco Mureddu, 2010. "Is Agglomeration really Good for Growth? Global Efficiency, Interregional Equity and Uneven Growth," DEGIT Conference Papers c015_022, DEGIT, Dynamics, Economic Growth, and International Trade.
- Baldwin, Richard E. & Martin, Philippe & Ottaviano, Gianmarco I.P., 1998.
"Global Income Divergence, Trade and Industrialisation: The Geography of Growth Take-Offs,"
Working Paper Series
496, Research Institute of Industrial Economics.
- Baldwin, Richard E & Martin, Philippe & Ottaviano, Gianmarco I P, 2001. " Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," Journal of Economic Growth, Springer, vol. 6(1), pages 5-37, March.
- Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 1998. "Global Income Divergence, Trade and Industrializatiion: The Geography of Growth Take-Offs," NBER Working Papers 6458, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Martin, Philippe & Ottaviano, Gianmarco, 1998. "Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs," CEPR Discussion Papers 1803, C.E.P.R. Discussion Papers.
- Baldwin, Richard & Martin, Philippe, 2003.
"Agglomeration and Regional Growth,"
CEPR Discussion Papers
3960, C.E.P.R. Discussion Papers.
- Douglas Gollin & Stephen Parente & Richard Rogerson, 2002.
"The Role of Agriculture in Development,"
Department of Economics Working Papers
2002-09, Department of Economics, Williams College.
- Murata, Yasusada, 2008. "Engel's law, Petty's law, and agglomeration," Journal of Development Economics, Elsevier, vol. 87(1), pages 161-177, August.
- Flora Bellone & Marie-Antoinette Maupertuis, 2003. "Economic Integration and Regional Income Inequalities: Competing Dynamics of Regional Wages and Innovative Capabilities," Review of International Economics, Wiley Blackwell, vol. 11(3), pages 512-526, 08.
- Foellmi, Reto & Zweimüller, Josef, 2008. "Structural change, Engel's consumption cycles and Kaldor's facts of economic growth," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1317-1328, October.
When requesting a correction, please mention this item's handle: RePEc:cns:cnscwp:201118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau)
If references are entirely missing, you can add them using this form.