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Geography and Demography: New Economic Geography with Endogenous Fertility

Author

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  • Hiroshi Goto

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Keiya Minamimura

    (Graduate School of Economics, Kobe University)

Abstract

To explain the links between population distribution and economic integration, we construct a spatial economics model with endogenous fertility. A higher population concentration increases real wages and child-raising costs, thus lowering the fertility rate. However, people migrate to more populated regions to obtain higher real wages. We show that mobility across regions results in more people flowing into highly populated regions, but lowers fertility rates there. The population growth path resembles a logistic curve in the early phase, but population decreases in the last phase. Additionally, economic integration leads to population concentration and decreases population size in the whole economy.

Suggested Citation

  • Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2015-33
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2015-33.pdf
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    Cited by:

    1. Madoka Muroishi & Akira Yakita, 2021. "Agglomeration economies, congestion diseconomies, and fertility dynamics in a two-region economy," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 51-63, April.
    2. Kónya, István, 2019. "Külkereskedelem, regionális különbségek és a képzettek vándorlása [Foreign trade, regional differences, and migration of skilled staff]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 635-652.
    3. Wataru Takahashi, 2021. "Population Mobility Structural Analysis and Population Estimation Using a Quantitative Spatial Model," Discussion papers ron339, Policy Research Institute, Ministry of Finance Japan.
    4. Hiroshi Goto & Keiya Minamimura, 2019. "Geography and Demography: New Economic Geography with Endogenous Fertility," The Japanese Economic Review, Springer, vol. 70(4), pages 537-568, December.

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    More about this item

    Keywords

    Population change; Agglomeration; Migration; Trade; Economic integration;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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