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Which Has Stronger Impacts on Regional Segregation: Industrial Agglomeration or Ethnolinguistic Clustering?

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  • Mariko Nakagawa

Abstract

We investigate how regional segregation patterns are affected by industrial agglomeration and ethnic clustering, by adding the externality of ethnicity to the model of agglomeration and trade proposed by Ottaviano et al. (2002. Agglomeration and trade revisited, International Economic Review , 43, 409-436). We show that ethnic segregation patterns are persistent, while ethnic mixing distribution appears only when trade costs are intermediate and ethnicity clustering preferences are less intense. Further, discrepancies of the social optimum and equilibrium are caused because the social optimum is less sensitive to a change in trade costs, when the population of farmers (immobile factors affecting ethnicity utilities) is sufficiently large.

Suggested Citation

  • Mariko Nakagawa, 2015. "Which Has Stronger Impacts on Regional Segregation: Industrial Agglomeration or Ethnolinguistic Clustering?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 10(4), pages 428-450, December.
    • Handle: RePEc:taf:specan:v:10:y:2015:i:4:p:428-450
    DOI: 10.1080/17421772.2015.1076576
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    1. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
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    Cited by:

    1. Zixin Dou & Yanming Sun & Tao Wang & Huiyin Wan & Shiqi Fan, 2021. "Exploring Regional Advanced Manufacturing and Its Driving Factors: A Case Study of the Guangdong–Hong Kong–Macao Greater Bay Area," IJERPH, MDPI, vol. 18(11), pages 1-14, May.
    2. Guojian Hu & Xiaomin Liang & Yuqi Lu & Yu Chen, 2021. "Interprovincial separation between headquarters and registered addresses: The case of listed companies in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1080-1098, June.

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