caa a22 4500 606165533 CHVBK 20210128100654.0 cr unu---uuuuu 210128e20151201xx s 000 0 eng 10.1007/s00168-015-0708-7 doi (NATIONALLICENCE)springer-10.1007/s00168-015-0708-7 Lee Chul-In Department of Economics, Seoul National University, 599 Gwanak-ro Gwanak-gu, 151-746, Seoul, RepublicofKorea aut Agglomeration, search frictions and growth of cities in developing economies [Elektronische Daten] [Chul-In Lee] We study agglomeration economies from a dynamic search-matching perspective to account for the growth of cities in developing economies. Agglomeration economies are not only the cause but also the consequence of migratory inflows. Without frictions, however, agglomeration economies as a labor-pull factor will attract workers instantaneously to a region, which is inconsistent with the data. We argue that agglomeration benefits combined with search and additional frictions (e.g., fixed costs and imperfect recognition of the benefits) can generate a transitory endogenous growth path that is consistent with the set of empirical regularities observed over the economic development process: gradual rural-to-urban migration and the resulting urban concentration, productivity improvement, urban unemployment, and wage and unemployment gaps across regions, which diminish with economic development. We also characterize optimal urbanization and draw some policy implications including the necessity of regulating urban concentration. Springer-Verlag Berlin Heidelberg, 2015 The Annals of Regional Science Springer Berlin Heidelberg 55/2-3(2015-12-01), 421-451 0570-1864 55:2-3<421 2015 55 168 https://doi.org/10.1007/s00168-015-0708-7 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s00168-015-0708-7 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Lee Chul-In Department of Economics, Seoul National University, 599 Gwanak-ro Gwanak-gu, 151-746, Seoul, RepublicofKorea aut NATIONALLICENCE 773 0- The Annals of Regional Science Springer Berlin Heidelberg 55/2-3(2015-12-01), 421-451 0570-1864 55:2-3<421 2015 55 168