Do migrants follow market potentials? An estimation of a new economic geography model
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چکیده
منابع مشابه
Do migrants follow market potentials? An estimation of a new economic geography model
New Economic Geography models describe a cumulative process of spatial agglomeration. Firms tend to cluster in locations with good access to demand, and similarly, workers are drawn to regions with good access to sources of supply. This paper provides an empirical assessment of this forward linkage that relates labour migrations to the geography of production through real wage differentials. In...
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New Economic Geography (NEG) has reached a theoretical consolidation while related empirical tests are still scarce. The present paper aims at providing some evidence on the validity of forces emphasised by NEG. The analysis starts from the nominal wage equation derived from the Krugman “core-periphery model” and focuses on one of the main propositions of NEG that access advantages raise factor...
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One of the most striking feature of the space-economy is that cities form a hierarchical system exhibiting some regularity in terms of their size and the array of goods they supply. In order to show how such a hierarchical system may emerge, we consider a model with monopolistically competitive markets for the industrial sectors. As transport costs steadily decrease from large values, the urban...
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www.econstor.eu Capital Market Frictions and Economic Geography
The field of New Economic Geography (NEG) aims at explaining agglomeration based on increasing returns, monopolistic competition and international factor mobility. Deviating from existing approaches, this paper constructs a theoretical model based on capital market frictions. Firms compete monopolistically, but are lead by managers subject to moral hazard. Incentivizing managers is cheaper in r...
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ژورنال
عنوان ژورنال: Journal of Economic Geography
سال: 2004
ISSN: 1468-2702,1468-2710
DOI: 10.1093/jnlecg/lbh029