On the Evolution of Regional Asymmetries
AbstractThe 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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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 9916.
Date of creation: Aug 1999
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Web page: http://www.econ.cam.ac.uk/index.htm
Leapfrogging; convergence; Local interaction; Technological adoption; Inta- distribution mobility;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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