A Model of Economic Growth in Two Spatial Dimensions

Abstract

. In this work we propose a two dimensional version of the spatial Solow-Swan economic growth model with capital-induced labor migration. As in the unidimensional model, the stability analysis results show that the capital-induced labor migration parameter must be greater than a critical value so that the model can generate static spatial agglomerations or spatio-temporal cycles. Numerical simulations show that a more intense capital-induced labor migration and returns to scale in the production process tend to increase the complexity of the two-dimensional spatio-temporal dynamical behavior of the economy. Moreover, in two spatial dimensions the static economic agglomerations generated by the model can assume one of two forms, spots or stripes.