Date Thesis Awarded

12-2017

Document Type

Honors Thesis

Degree Name

Bachelors of Science (BS)

Department

Mathematics

Advisor

Junping Shi

Committee Members

Vladimir Bolotnikov

Evgenia Smirni

Gexin Yu

Abstract

A mathematical model of coupled differential equations is proposed to model economic growth of two geographical regions (cities, regions, continents) with flow of capital and labor between each other. It is based on two established mathematical models: the neoclassical economic growth model by Robert Solow, and the logistic population growth model. The capital flow, labor exchange and spatial heterogeneity are also incorporated in the system. The model is analyzed via equilibrium and stability analysis, and numerical simulations. It is shown that a strong attraction to the high capital region can lead to unbalanced economic growth even when the two geographical regions are similar. The model can help policy makers to decide whether the region should have an open economy or a more closed one. The results of the model can predict the trend of the trade between regions and provide a new insight into some hotly debated contemporary controversial topics.

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