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Author:Fujita, M.
Thisse, J-F.
Title:Does geographical agglomeration foster economic growth? And who gains and loses from it?
Journal:Japanese Economic Review
2003 : VOL. 14:2-3, p. 121-145
Index terms:Economic growth
Geography
Innovation
R&D
Freeterms:Agglomeration
Language:eng
Abstract:A two-region model of endogenous growth is proposed, which is a natural combination of a core-periphery model by Krugman and an endogenous growth model by Grossman, Helpman and Romer. The innovation activity in the R&D sector involves knowledge externalities among skilled workers. The analysis supports the idea that the additional growth spurred by agglomeration may lead to a Pareto-dominant outcome such that, when the economy moves from dispersion to agglomeration, innovation follows a much faster pace.
SCIMA record nr: 250984
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