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Author Crozet, Matthieu
Source Hyper Articles en Ligne (HAL)
Content type Text
Publisher Oxford University Press (OUP): Policy F
File Format PDF
Language English
Subject Keyword Agglomeration ♦ economic geography ♦ European regions ♦ migration. ♦ migration ♦ shs ♦ Humanities and Social Sciences/Economies and finances
Abstract New Economic Geography models describe a cumulative process of spatial agglomeration: Firms tend to cluster in locations with good access to demand, and similarly, workers are drawn to regions where market potential is high because the price index is lower there. This paper provides an empirical assessment of this forward linkage that relates labour migrations to the geography of production through real wage differentials. In the spirit of Hanson (1998), we use bilateral migration data for five European countries over the 1980s and 1990s to perform quasi-structural estimations of a new economic geography model derived from Krugman (1991). The results show strong evidence in favor of this model. As expected, migrants do follow market potential. Moreover, we provide estimates for all key parameters of the model. These estimates suggest that a sudden emergence of a core-periphery pattern is unlikely within European countries: centripetal forces are too limited in geographical scope, and mobility costs are too high.
ISSN 14682702
Educational Use Research
Learning Resource Type Article
Publisher Date 2004-08-01
e-ISSN 14682710
Journal Journal of Economic Geography
Volume Number 4
Issue Number 4
Page Count 20
Starting Page 439
Ending Page 458