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 …

In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of … economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower … propensity to export. This renders the home market more important speaking against agglomeration. We also relate changes in firm …

We examine “agglomeration shadows” that emerge around large cities, which discourage some economic activities in nearby … areas. Identifying agglomeration shadows is complicated, however, by endogenous city formation and \wave interference" that … estimate agglomeration shadows cast on nearby areas. We find that empirically, as in the simulations, detectable agglomeration …

heterogeneous with respect to their entrepreneurial ability, and firms run by more able entrepreneurs have a higher productivity …

combines elements of the literatures on economic geography, multinational firms, urban economics, and trade theory. A two …-city country trades with the larger world, and workers within the country are mobile between the two cities. Productivity in a …

model of city formation with heterogeneous firms and international trade. We find that agglomeration economies have … aggregate structural change. Rising manufacturing productivity and falling international trade costs further contribute to the … growth of large services firms in the densest urban areas, boosting services productivity and services exports, but also land …