Agglomeration in the Periphery

Matti Sarvimäki ()

SERC Discussion Papers from Centre for Economic Performance, LSE

Abstract: i. This discussion paper is a completely revised version of SERCDP0047, published April 2010. This paper argues that agglomeration externalities are important even in the rural periphery. The analysis focuses on the forced relocation of more than a tenth of the Finnish population after World War II. Using the details of the resettlement policy to construct instrumental variables for wartime population growth rate, I find that an exogenous increase in municipality's population had a positive effect on later population growth, industrialization and real wages. These findings are consistent with the presence of agglomeration externalities and inconsistent with other popular explanations for the spatial distribution of economic activity.

Keywords: Agglomeration externalities; natural advantages; migration (search for similar items in EconPapers)
JEL-codes: J61 N94 R12 (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://cep.lse.ac.uk/pubs/download/sercdp0080.pdf (application/pdf)

Related works:
Working Paper: Agglomeration in the periphery (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0080

Access Statistics for this paper

More papers in SERC Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().