Baldwin, Richard E; Forslid, Rikard - In: Economica 67 (2000) 267, pp. 307-24
We present a model where long-run growth and industrial location are jointly endogenous by introducing Romerian product innovation growth into Krugman's core-periphery model. We focus on stability, showing that growth is a powerful centripetal force, but that knowledge spillovers are a powerful...