According to New Growth Theory one cannot rely on the convergence mechanisms inherent in traditional neoclassical constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about technology, factor mobility and ease of knowledge...

Despite the increasing and newly inspired interests in geographical economics and industry location theory, the majority of existing New Economic Geography models ignores the interdependence between spatial concentration, knowledge diffusion, invention and growth. For this reason, the paper...

In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000)...