Discussion paper

DP13381 Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs

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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Citation

Forslid, R and T Okubo (2018), ‘DP13381 Trade Liberalization and the Agglomeration of Heterogeneous Entrepreneurs ‘, CEPR Discussion Paper No. 13381. CEPR Press, Paris & London. https://cepr.org/publications/dp13381