Tabuchi, Takatoshi; Thisse, Jacques-François; Zhu, Xiwei - C.E.P.R. Discussion Papers - 2014
level of transport costs, rising labor productivity fosters the agglomeration of activities, whereas falling transport costs … do not affect the location of activities. When labor is heterogeneous, the number of workers residing in the more … productive region increases by decreasing order of productive efficiency when labor productivity rises. …