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Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs

Author

Listed:
  • Toshihiro Okubo

    (faculty of economics, keio university)

  • Rikard Forslid

    (Department of Economics, Stockholm University)

Abstract

This paper introduces spatial sorting of heterogeneous entrepreneurs (firms) in the "foot-loose entrepreneur" trade and geography model. The model generates agglomeration from a uniform space contrary to the "footloose capital" model. The model also generates spatial sorting in reverse productivity order with the least productive entrepreneur being the first to relocate.

Suggested Citation

  • Toshihiro Okubo & Rikard Forslid, 2018. "Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs," Keio-IES Discussion Paper Series 2018-019, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2018-019
    as

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    References listed on IDEAS

    as
    1. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
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    5. Rikard Forslid & Toshihiro Okubo, 2015. "Which Firms Are Left In The Periphery? Spatial Sorting Of Heterogeneous Firms With Scale Economies In Transportation," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 51-65, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agglomeration; Heterogeneous firms; Trade liberalization;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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