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The Core–Periphery Model and Endogenous Growth

Stabilizing and Destabilizing Integration

Bibliographic Data

ID9727967
AuthorsRichard Baldwin (0000-0001-8663-6293, Graduate Institute of International and Development Studies), Richard E Baldwin, Rikard Forslid (0000-0003-4290-1889)
Year2000
Volume67
Issue267
Pages307-324
Publication date2000-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1468-0335.00211
OpenAlexW3125854052
LanguageEN
Citations received30
References cited4

We present a model where long‐run growth and industrial location are jointlyendogenous by introducing Romerian product innovation growth into Krugman'score–periphery model. We focus on stability, showing that growth is apowerful centripetal force, but that knowledge spillovers are a powerfulcentrifugal force. Integration policies that lower the cost of tradingideas are shown to encourage dispersion of economic activity while thosethat lower the cost of trading goods encourage agglomeration. Agglomerationis shown to be favourable to growth in both regions. The pro‐growth effectsmitigate the periphery's static welfare loss from agglomeration

Centripetal force · Core (optical fiber) · Economic integration · Economics · Economies of agglomeration · Endogenous growth theory · Growth model · Human capital · International economics · Market economy · Microeconomics · Product (mathematics) · Welfare · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis

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Unique citing works30
Citations per year1,25
Citation span2002 - 2026 (25)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 26

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