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On the Evolution of Regional Asymmetries

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  • Giovannetti, E.

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.

Suggested Citation

  • Giovannetti, E., 1999. "On the Evolution of Regional Asymmetries," Cambridge Working Papers in Economics 9916, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:9916
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    More about this item

    Keywords

    Leapfrogging; convergence; Local interaction; Technological adoption; Inta- distribution mobility;
    All these keywords.

    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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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