SMU SOE Seminar Series (November 21, 2023): Mechanics of Spatial Growth

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TOPIC:

MECHANICS OF SPATIAL GROWTH

ABSTRACT We develop a dynamic spatial growth model to explore the role of trade and internal migration in the process of spatial development and aggregate growth. We consider an economy in which growth is shaped by the best global and local ideas that contribute to the local stock of knowledge. Global ideas diffuse to locations that are more exposed to international trade. Local ideas diffuse across space when workers move to another location. We embed the diffusion of ideas through trade and migration into a dynamic spatial framework with trade, forward-looking migration decisions, and capital accumulation. We characterize the equilibrium properties of the model, prove uniqueness of the balanced growth path, and show how to take the model to the data to conduct counterfactual analysis. As an application, we study China’s spatial and aggregate growth during the 1990s and 2000s. We find that international trade and internal migration are important mechanisms for idea diffusion that contributed to China’s spatial and aggregate growth, with heterogeneous effects across space. Using patent data we provide further evidence of idea diffusion through trade and migration. Click here to view the paper. Click here to view the CV.
		PRESENTER Lorenzo Caliendo Yale School of Management
		RESEARCH FIELDS International Trade Migration Spatial and Macroeconomics
		DATE: 21 November 2023 (Tuesday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903

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