Mechanics of Spatial Growth

Miércoles 10/8, 17h

Presentado por Lorenzo Caliendo
Paper Abstract
We develop a dynamic spatial growth model to explore the role of trade and internal migration in the process of economic development. In our model, the best global and local ideas
contribute to the local stock of knowledge. Global ideas diffuse more to regions that are relatively more exposed to international trade. In addition, workers learn about local ideas and
they diffuse these ideas across space and generate new insights to local producers when they move to another location. We show that the stock of ideas at each location can be characterized by a tractable system of difference equations and that there exists a unique balanced growth path of the economy. We embed the diffusion of ideas through trade and migration into a multi-country, multi-region framework with international trade, forward looking dynamic migration decisions and endogenous capital accumulation. We apply our framework to study the role that international trade and internal migration had on China’s spatial development since the 90’s. 

*Jointly written with Sheng Cai, Fernando Parro and Wei Xiang.

Lorenzo Caliendo
Ph.D. in Economics, University of Chicago.
Won Park Hahn Professor of Global Affairs and Management at Yale University; Professor of Economics at the School of Management and Deputy Dean at the Jackson School of Global Affairs.

Professor Caliendo’s research is focused on understanding and quantifying the economic effects of international trade and migration. His work follows three main strands. The first strand focuses on the determinants of the trade and welfare effects of commercial and migration policy. Of particular interest to him are the propagation effects, via input-output linkages, across spatially distinct labor markets. The second examines how a firm’s growth and how foreign trade competition affect a firm’s organizational structure, the wage structure inside a firm, and a firm’s productivity. The third strand deals with understanding the macroeconomics effects of international trade and growth.

Professor Caliendo joined Yale SOM in 2011. Before that, he was a Visiting Research Fellow at the International Economic Section, Department of Economics of Princeton University and a Lecturer in Economics at the University of Chicago. He received two Uruguayan National Prizes in Economics (Premio Raúl Trajtenberg and ACADECO). He holds a BA in Economics (UCUDAL), a MCom (Auckland University), a MA in Economics and a PhD in Economics from the University of Chicago. He is also an Associate Professor of Economics at the Department of Economics of Yale University (by courtesy), a Faculty Research Fellow at the National Bureau of Economic Research, a member of the Research Staff at the Cowles Foundation for Research in Economics, affiliated Faculty to the Jackson Institute for Global Affairs at Yale University, and an Associate Editor at the Journal of International Economics.

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