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Internet cluster emergence

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  • Quah, Danny

Abstract

Internet development holds the promise of transmitting economic value across physical space at zero marginal cost. In such a 'weightless economy', what factors matter for the location of economic activity and thus for economic development? This paper sketches a model of spatial dynamics over a three-dimensional globe, where transportation costs don't matter. The paper develops conditions under which clusters of activity emerge.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 44 (2000)
Issue (Month): 4-6 (May)
Pages: 1032-1044

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Handle: RePEc:eee:eecrev:v:44:y:2000:i:4-6:p:1032-1044

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References

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  1. Futia, Carl A, 1982. "Invariant Distributions and the Limiting Behavior of Markovian Economic Models," Econometrica, Econometric Society, vol. 50(2), pages 377-408, March.
  2. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
  3. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
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Cited by:
  1. Bischi, G. -I. & Dawid, H. & Kopel, M., 2003. "Gaining the competitive edge using internal and external spillovers: a dynamic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11-12), pages 2171-2193, September.
  2. Danny Quah, 2003. "Digital goods and the new economy," LSE Research Online Documents on Economics 2236, London School of Economics and Political Science, LSE Library.
  3. Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.
  4. Yannis Ioannides, 2001. "Topologies of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0104, Department of Economics, Tufts University.
  5. Danny Quah, 2003. "Digital Goods and the New Economy," CEP Discussion Papers dp0563, Centre for Economic Performance, LSE.
  6. Danny Quah, 2002. "Technology dissemination and economic growth: some lessons for the new economy," LSE Research Online Documents on Economics 2118, London School of Economics and Political Science, LSE Library.
  7. Raphaël Suire & Jérome Vicente & Yan Dala Pria, 2006. "Why some clusters succeed whereas others decline ? Modelling the ambivalent stability properties of clusters," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 200619, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  8. Charles Ka Yui Leung & Nan-Kuang Chen, 2005. "Intrinsic Cycles of Land Price: A Simple Model," Discussion Papers 00005, Chinese University of Hong Kong, Department of Economics.
  9. Bellone Flora, 2005. "IT adoption and spatial agglomeration - a model of cumulative adoption in a small open economy," ERSA conference papers ersa05p731, European Regional Science Association.
  10. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA.
  11. Danny Quah, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEP Discussion Papers dp0522, Centre for Economic Performance, LSE.
  12. Jérôme Vicente & Raphaël Suire, 2009. "Why Do Some Places Succeed When Others Decline? A Social Interaction Model of Cluster Viability," Post-Print hal-00418539, HAL.
  13. Quah, Danny, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEPR Discussion Papers 3207, C.E.P.R. Discussion Papers.
  14. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
  15. Jérome VICENTE (LEREPS-GRES) & Yan Dalla PRIA (CSO – CNRS) & Raphaël SUIRE (CREM – CNRS), 2006. "The Ambivalent Role of Mimetic Behaviors in Proximity Dynamics: Evidences on the French “Silicon Sentier”," Cahiers du GRES 2006-02, Groupement de Recherches Economiques et Sociales.
  16. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.

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