productivity differences, the model features profit and wage differentials across industries. We use this setting to study the …

regional characteristics and agglomeration evolved. This paper focuses on the impact of region and industry on dynamics and …

workers are not able to take full advantage of the benefits from agglomeration economies. China is changing rapidly, however … institutional limitations in China against further agglomeration weaken, and that the consensus in the literature that 'Chinese …

Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … of total factor productivity (TFP) – and equivalently of real per capita income or welfare – as a smaller fraction of … market size and TFP. We argue that models with heterogeneous firms and selection help to reconcile theory and data. While …

efficiency arises since the efficient distribution of regional infrastructure requires full agglomeration for sufficiently low …