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Economic Development And Non‐Monotonic Spatial Transitions

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  • RYO ITOH

Abstract

The purpose of the present study is to analyse non‐monotonic spatial changes accompanying economic development. A dynamic two‐region model with endogenous human capital and converging processes to its long‐run equilibria is investigated. The main focus of the present study is to investigate how the level of migration cost influences the shape of a converging process. From the analysis of the model, population distribution draws an inverted‐U‐curve to describe economic development when the cost of migration is low enough. Also, the transition of interregional income inequalities is an inverted‐U when migration cost is at an intermediate level.

Suggested Citation

  • Ryo Itoh, 2010. "Economic Development And Non‐Monotonic Spatial Transitions," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 234-251, June.
    • Handle: RePEc:bla:jecrev:v:61:y:2010:i:2:p:234-251
    DOI: 10.1111/j.1468-5876.2009.00479.x
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    Cited by:

    1. Ryo Itoh, 2013. "Regional income disparities in an OLG structure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 185-202, February.

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