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Growth and Agglomeration

Bibliographic Data

ID23364286
AuthorsPhilippe Martin (0000-0001-5551-8016, Center for Economic and Policy Research), Gianmarco I P Ottaviano (University of Bologna)
Year2001
Volume42
Issue4
Pages947-968
Publication date2001-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueInternational Economic Review (JOURNAL)
Journal identifiersISSN: 0020-6598 • E-ISSN: 1468-2354
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1468-2354.00141
OpenAlexW1985285306
LanguageEN
Citations received61

This article presents a model in which growth and geographic agglomeration of economic activities are mutually self‐reinforcing processes. Economic agglomeration in one region spurs growth because it reduces the cost of innovation in that region through a pecuniary externality due to transaction costs. Growth fosters agglomeration because, as the sector at the origin of innovation expands, new firms tend to locate close to this sector. Agglomeration implies that all innovation and most production activities take place in the core region. However, as new firms are continuously created in the core, some relocate their production to the periphery.

Business · Core (optical fiber) · Economic geography · Economic growth · Economic system · Economics · Economies of agglomeration · Externality · Industrial organization · Microeconomics · Production (economics) · Transaction cost · Urban agglomeration · Economic Growth and Productivity · Engineering · Regional Development and Policy · Regional Economics and Spatial Analysis

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Unique citing works61
Citations per year2,65
Citation span2003 - 2026 (24)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 58

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