Integration, agglomeration and the political economics of factor mobility
By Gianmarco I. P. Ottaviano, Jacques-François Thisse. 2002
153 citations recorded by the source corpus.
This paper tackles the issue of the optimality of agglomeration in a two-region economy with skilled/mobile and unskilled/immobile workers. The market leads to the optimal outcome when transport costs are high or low. However, for intermediate values, it yields agglomeration whereas dispersion is socially desirable. We show that competitive lobbying on factor mobility by the two groups of workers sustains the second best optimum.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/220fcfbd27c2371f8a1f18cf1bcaa8f4a893c8a4
How researchers see this paper
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In Economics and Econometrics
- Masahisa Fujita
- M. de Jong
- Servaas Storm
- Paul Krugman
- Nannan Yu
- Jianing Mi
- Engelbert Stockhammer
- Özlem Onaran
Citations in the corpus
- The new economic geography: Past, present and the future (2003, background): “For specific results on optimality issues, see Ottaviano and Thisse (2002) and Baldwin et al. (2003, Chapter 11) with core-periphery models, and Fujita and Thisse (2002, Chapter 10) with urban models.”
- Transport Infrastructure, Spatial Clusters and Regional Economic Growth in China (2012, background): “When it comes to direct benefits of transport infrastructure, economic growth is achieved with the money and time savings induced by improved transportation, and this mechanism is experienced at the regional level by governments or enterprises in various types of markets (Ottaviano and Puga, 1997 ;”