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Internet Cluster Emergence

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Author Info
Danny Quah
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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Publisher 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
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Handle: RePEc:cep:cepdps:dp0441

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

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

Cited by:
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  1. Quah, Danny, 2003. "Digital Goods and the New Economy," CEPR Discussion Papers 3846, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Jérôme Vicente & Raphaël Suire, 2009. "Why Do Some Places Succeed When Others Decline? A Social Interaction Model of Cluster Viability," Post-Print hal-00418539_v1, HAL. [Downloadable!]
  3. Yannis M. Ioannides, 2004. "Topologies Of Social Interactions," Econometric Society 2004 North American Winter Meetings 287, Econometric Society. [Downloadable!]
    Other versions:
  4. Quah, Danny, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEPR Discussion Papers 3207, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Orlando Gomes, 2004. "Location Dynamics and Knowledge Agglomeration," Urban/Regional 0409012, EconWPA. [Downloadable!]
  6. Danny Quah, 2002. "Technology Dissemination and Economic Growth: Some Lessons for the New Economy," CEP Discussion Papers dp0522, Centre for Economic Performance, LSE. [Downloadable!]
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This page was last updated on 2009-12-13.


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