Chapter 60

Agglomeration and Regional Growth

Richard E. Baldwin 1baldwin@hei.unige.ch     Graduate Institute of International Studies, Geneva, Switzerland.

Philippe Martin 2martin-p@mail.enpc.fr     University of Paris 1 Panthéon-Sorbonne, Paris, France.

JEL classification: O40, R11, R12

Abstract

We review the theoretical links between growth and agglomeration. Growth, in the form of innovation, can be at the origin of catastrophic spatial agglomeration in a cumulative process à la Myrdal. One of the surprising features of the Krugman [Journal of Political Economy 99 (1991) 483–499] model, was that the introduction of partial labor mobility in a standard “new trade model” with trade costs could lead to catastrophic agglomeration. The growth ...

Get Handbook of Regional and Urban Economics now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.