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Title: Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs

Author(s): Rikard Forslid and Toshihiro Okubo

Publication Date: December 2018

Keyword(s): agglomeration, Heterogeneous Firms and trade liberalization

Programme Area(s): International Trade and Regional Economics

Abstract: This paper introduces spatial sorting of heterogeneous entrepreneurs (firms) in the 'footloose entrepreneur' trade and geography model. The model generates agglomeration from a uniform space contrary to the 'footloose capital' model. The model also generates spatial sorting in reverse productivity order with the least productive entrepreneur being the first to relocate.

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Bibliographic Reference

Forslid, R and Okubo, T. 2018. 'Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs '. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13381