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Internet Cluster Emergence

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  • Danny Quah
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    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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    File URL: http://cep.lse.ac.uk/pubs/download/DP0441.pdf
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    Bibliographic Info

    Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0441.

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    Date of creation: Feb 2000
    Date of revision:
    Handle: RePEc:cep:cepdps:dp0441

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    Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

    Related research

    Keywords: Distribution dynamics; economic geography; internet; location; space; time; Toepitz; weightless economy;

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    Cited by:
    1. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    2. 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.
    3. 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.
    4. 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.
    5. Quah, Danny, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEPR Discussion Papers 3207, C.E.P.R. Discussion Papers.
    6. Danny Quah, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEP Discussion Papers dp0522, Centre for Economic Performance, LSE.
    7. 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.
    8. Koski, Heli & Rouvinen, Petri & Yla-Anttila, Pekka, 2001. "ICT Clusters in Europe. The Great Central Banana and the Small Nordic Potato," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    9. Yannis Ioannides, 2001. "Topologies of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0104, Department of Economics, Tufts University.
    10. 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.
    11. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA.
    12. Danny Quah, 2003. "Digital Goods and the New Economy," CEP Discussion Papers dp0563, Centre for Economic Performance, LSE.

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