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A Simple Dynamic Model of Uneven Development and Overtaking

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  • Klaus Desmet

    (Universidad Carlos III de Madrid)

Abstract

This paper extends the Brezis et al. (1993) Ricardian leapfrogging model by introducing geographically mobile capital and allowing for a wider variety of development patterns. In a two--region economy, localised learning--by--doing causes specialisation and uneven development. Technological change reverses the existing development pattern if the new technology locates in the low--wage region. However, the development pattern may also be reinforced if spillovers between the old and the new technology make the leading region a more attractive location. Capital flows are explicitly analysed and it is furthermore shown that inter--regional transfers may reduce the chance of take--off. Copyright Royal Economic Society 2002

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 482 (October)
Pages: 894-918

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Handle: RePEc:ecj:econjl:v:112:y:2002:i:482:p:894-918

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Cited by:
  1. Kjell Lommerud & Frode Meland & Odd Rune Straume, 2004. "Globalisation And Union Opposition To Technological Change," Royal Economic Society Annual Conference 2004 49, Royal Economic Society.
  2. Meunier, Olivier & Mignolet , Michel & Mulquin, Marie-Eve, 2007. "Interpersonal transfers: Do they impact the growth of poor and rich European regions?," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 10, pages 155-170.
  3. Gallo, Fredrik, 2005. "Increasing Returns, Input-Output Linkages, and Technological Leapfrogging," Working Papers 2005:22, Lund University, Department of Economics, revised 19 Jul 2006.
  4. ARTIGE, Lionel & CAMACHO, Carmen & de la CROIX, David, 2003. "Wealth breeds decline : reversals of leadership and consumption habits," CORE Discussion Papers 2003054, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Klaus Desmet & Ignacio Ortuño Ortín, 2007. "Rational Underdevelopment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(1), pages 1-24, 03.
  6. Rota, Mauro, 2009. "Long Run Loans and Industrial Policy in Italy in the 1960s," MPRA Paper 17189, University Library of Munich, Germany.
  7. Souleymane COULIBALY, 2006. "Persistent Uneven Spread of Economic Activities within Developing RIAs," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 06.01, Université de Lausanne, Faculté des HEC, DEEP.
  8. Furukawa, Yuichi & Takarada, Yasuhiro, 2013. "Technological change and international interaction in environmental policies," MPRA Paper 44047, University Library of Munich, Germany.
  9. Furukawa, Yuichi, 2012. "Perpetual leapfrogging in international competition," MPRA Paper 40126, University Library of Munich, Germany, revised Jul 2012.
  10. Kessler, Anke & Lessmann, Christian, 2010. "Interregional Redistribution and Regional Disparities: How Equalization Does (Not) Work," CEPR Discussion Papers 8133, C.E.P.R. Discussion Papers.

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