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Geography and International Inequalities: the Impact of New Technologies

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  • Anthony J. Venables

Abstract

Some writers have predicted that new technologies mean the 'death of distance', allowing suitably skilled economies to converge with high income countries. This paper evaluates this claim. It argues that geography matters for international income inequalities, and that new technologies will change, but not abolish this dependence. Some activities may become more entrenched in high income countries than they are at present. Others - where information can be readily codified and digitized - will relocate, but typically only to a subset of lower income countries. These countries will benefit, but other countries will continue to experience the costs of remoteness.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0507.

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Date of creation: Sep 2001
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Handle: RePEc:cep:cepdps:dp0507

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

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  1. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
  2. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
  3. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers, Chicago - Graduate School of Business 1, Chicago - Graduate School of Business.
  4. Richard E. Baldwin & Philippe Martin, 1999. "Two Waves of Globalisation: Superficial Similarities, Fundamental Differences," NBER Working Papers 6904, National Bureau of Economic Research, Inc.
  5. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
  6. Edward E. Leamer & Michael Storper, 2001. "The Economic Geography of the Internet Age," NBER Working Papers 8450, National Bureau of Economic Research, Inc.
  7. David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports 72, Federal Reserve Bank of New York.
  8. Thomas H. Klier, 1999. "Agglomeration in the U.S. auto supplier industry," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I, pages 18-34.
  9. Bengt Holmstrom & John Roberts, 1998. "The Boundaries of the Firm Revisited," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 73-94, Fall.
  10. James E. Rauch & Vitor Trindade, 1999. "Ethnic Chinese Networks in International Trade," NBER Working Papers 7189, National Bureau of Economic Research, Inc.
  11. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers, Center for International Development at Harvard University 1, Center for International Development at Harvard University.
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