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Integration, Agglomeration and Specialization: The Role of Factor Mobility


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Ribichesi, Christophe (2007). Integration, Agglomeration and Specialization: The Role of Factor Mobility Working Paper. Institut national de la recherche scientifique, Montréal.

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This paper addresses the question of what determines the industrial specialization of initially similar countries. More specifically, it expands current models in the New Economic Geography literature by introducing a clear distinction between agglomeration of industrial activities and sectoral concentration leading to industrial specialization of countries. This point is the first insight of the paper as the two dimension—agglomeration and specialization—are often confused in this literature as in Krugman [1991b] and Krugman and Venables [1995]. We describe a process in which there is an increasing specialization as integration proceeds associated with nonmonotonic agglomeration where the core first gains activity and then loses. A non monotonic evolution of sectoral allocation underlies this evolution of aggregate activity. Reduction in trade costs may increase the incentive to locate in the small country which presents a comparative advantage in term of factor costs. This advantage arises endogenously during the integration process. The second insight introduces a distinction between a dispersion process in which the aggregate activity disperses and a redispersion process in which only one sector moves from the core to the periphery.

Type de document: Monographie (Working Paper)
Mots-clés libres: agglomération; spécialisation; intégration; specialization; mobilité; mobility; linkages
Centre: Centre Urbanisation Culture Société
Date de dépôt: 12 nov. 2020 20:22
Dernière modification: 12 nov. 2020 20:22
URI: http://espace.inrs.ca/id/eprint/9349

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