July 2004
Intermediate to advanced
1082 pages
39h 18m
English
Content preview from Handbook of Regional and Urban Economics
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
Start your free trial
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 ...