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Agglomeration in the periphery

Sarvimäki, Matti (2011) Agglomeration in the periphery. SERC Discussion Papers (SERCDP0080). Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.

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Abstract

i. This discussion paper is a completely revised version of SERCDP0047, published April 2010. This paper argues that agglomeration externalities are important even in the rural periphery. The analysis focuses on the forced relocation of more than a tenth of the Finnish population after World War II. Using the details of the resettlement policy to construct instrumental variables for wartime population growth rate, I find that an exogenous increase in municipality's population had a positive effect on later population growth, industrialization and real wages. These findings are consistent with the presence of agglomeration externalities and inconsistent with other popular explanations for the spatial distribution of economic activity.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2011 The Author
Divisions: Spatial Economics Research Centre
Subjects: H Social Sciences > HN Social history and conditions. Social problems. Social reform
L Education > LB Theory and practice of education > LB2300 Higher Education
JEL classification: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
N - Economic History > N9 - Regional and Urban History > N94 - Europe: 1913-
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
Sets: Research centres and groups > Spatial Economics Research Centre
Date Deposited: 15 Jul 2014 15:19
Last Modified: 11 Jul 2019 23:33
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government
URI: http://eprints.lse.ac.uk/id/eprint/57857

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