Commendatore, Pasquale; Kubin, Ingrid; Petraglia, Carmelo - In: Economie Internationale (2008) 114, pp. 133-160
This paper elaborates on Baldwin’s (1999) New Economic Geography model allowing for capital accumulation and capital mobility between a “rich” and a “poor” region. A central government decides upon the level and the regional and sectoral allocation of productivity enhancing public...