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On the Evolution of Regional Asymmetries

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  • Giovannetti, E.
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    Abstract

    The paper models the evolution of regional asymmetries, and the associated intra-distribution mobility, as the outcome of adoption decisions taken by firms at different locations. The following equilibria are characterised: Persistent asymmetry where nobody adopts, Leapfrogging where low-quality firms adopt, Forging ahead where high-quality firms adopt, and Catching up where everybody adopts. The paper studies the impact of economic integration on these equilibria and the evolution of technological asymmetries as well as intra-distribution mobility. In equilibrium, the regional intra-distribution Mobility is described by fluctuations between periods of Leapfrogging, Forging ahead and Catching up.

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    File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/wp9916.pdf
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    Bibliographic Info

    Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 9916.

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    Date of creation: Aug 1999
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    Handle: RePEc:cam:camdae:9916

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    Web page: http://www.econ.cam.ac.uk/index.htm

    Related research

    Keywords: Leapfrogging; convergence; Local interaction; Technological adoption; Inta- distribution mobility;

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