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Technological Change in Information-Processing Industries and Regional Income Differentials in Developing Countries

Author

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  • John M. Clapp

    (Department of Finance, University of Connecticut, Storrs, Connecticut 06268 USA)

  • Harry W. Richardson

    (Department of Economics, State University of New York, Albany, New York 12222 USA)

Abstract

It is generally believed that the computer revolution and advances in information processing will erode one of the last constraints on the location of economic activities, namely the reliance on face-to-face contacts in the quaternary industries. There will be no need for these activities to cluster in core region metropolitan cities. They can become footloose and disperse to other regions according to locational preferences or other reasons. Whatever the merits of this idea, this paper argues that this will not happen in developing countries. Using a core-periphery model, it shows that as long as unit transport, communication, and contact costs are higher in the periphery than in the core, the impact of technological progress in the information-processing sector will tend to widen coreperiphery disparities rather than to narrow them. The policy options in this situation are quite limited.

Suggested Citation

  • John M. Clapp & Harry W. Richardson, 1984. "Technological Change in Information-Processing Industries and Regional Income Differentials in Developing Countries," International Regional Science Review, , vol. 9(3), pages 241-256, December.
    • Handle: RePEc:sae:inrsre:v:9:y:1984:i:3:p:241-256
    DOI: 10.1177/016001768400900304
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    References listed on IDEAS

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    1. Harry W. Richardson, 1980. "Polarization Reversal In Developing Countries," Papers in Regional Science, Wiley Blackwell, vol. 45(1), pages 67-85, January.
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    Cited by:

    1. Maurice Catin & Christophe Van Huffel, 2003. "Concentration urbaine et industrialisation," Mondes en développement, De Boeck Université, vol. 121(1), pages 87-107.
    2. Won Kim, 1988. "Population redistribution policy in Korea: A review," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 7(1), pages 49-77, January.

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