This study is to investigate the short- and long-run causal relationship between agglomeration (localization and urbanization) economies and labor productivity in the manufacturing sector of 28 Iranian provinces over an 11-year period, 2001–2011. Fully Modified Ordinary Least Squares (FMOLS) method was used to estimate our long-run panel data model. The empirical findings suggested that localiz...

Sustainability of agriculture is challenged by increasing sprawl in urban agglomerations. Under increasing agglomeration economies in large and even medium sized cities, more and more soil is being subtracted to agriculture, depriving agricultural activities of the main production factor. The extent to which the expanding urbanization threatens agricultural development depends on the urban spat...

The large and persistent wage gap between the Bangkok Metropolitan Region its peripheries remains a major concern for policymakers civil society. Theoretically, these regional disparities exist due to differences in workforce skills local characteristics of regions. This study empirically investigates sources spatial disparity Thailand using data sets from Labor Force Survey, Industrial Census,...

This paper analyzes the effect of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general-equilibrium framework, assuming monopolistic competition in intermediate goods markets. It shows that the interplay of heterogeneous skills and comparatively homogeneous land demand triggers skill segmentation and agglomeration. The cor...

Geographic clustering of innovative industries is associated with the entry and success of spinoff firms. We develop a model to explain the multiple empirical patterns regarding cluster growth and spinoff formation and performance, without relying on agglomeration externalities. Clustering naturally follows from spinoffs locating near their parents. In our model, firms grow and spinoffs form th...

An extensive literature discusses the existence of a virtuous circle of expectations that might lead communities to Pareto-superior states among multiple potential equilibria. It is generally accepted that such multiplicity stems fundamentally from the presence of positive agglomeration externalities. We examine a two-sector model in this class, and look for intertemporal perfect foresight equi...