This paper constructs a dynamic two-regional general equilibrium model, in which the interregional production and trade patterns are endogenously determined. By embedding an endogenous growth mechanism in this approach, it becomes possible to show why and how localized growth with different...

Problems related to labor migration on a large scale in South-North as well as in East-West direction are high on the agenda. This papers presents an endogenous growth model for two regions with human capital formation as the engine of growth. The model is used to analyze the growth (rate)...