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Technical Change, Location, And Trade

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  • Börje Johansson
  • Lars Westin

Abstract

ABSTRACT The difference between the slow adjustment of localized resources and the faster processes of technical change and product renewal causes a relocation pressure on existing production, Introduction of new products, techniques, and establishments is stimulated by opportunities to attain temporary monopoly profits and is restrained by sunk costs in older vintages and competition for local resources;. Introduction is more frequent in nodes with a rich and varied import structure. The process can he modeled as a chain of import, production, and export cycles with relocation. Conditions for introduction and change of location are analyzed by means of a spatial vintage model.

Suggested Citation

  • Börje Johansson & Lars Westin, 1987. "Technical Change, Location, And Trade," Papers in Regional Science, Wiley Blackwell, vol. 62(1), pages 13-35, January.
    • Handle: RePEc:bla:presci:v:62:y:1987:i:1:p:13-35
    DOI: 10.1111/j.1435-5597.1987.tb01050.x
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    Cited by:

    1. Haikonen, Arto, 2000. "Interregional Trade Flows In Finland:Research Methods And Some Empirical Evidence," ERSA conference papers ersa00p514, European Regional Science Association.
    2. Johansson, Börje & Forslund, Ulla, 2005. "The Analysis of Location, Co-location and Urbanisation Economics," Working Paper Series in Economics and Institutions of Innovation 46, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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