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Technical Change and Agglomeration

Author

Listed:
  • Stéphane Riou

    (CREUSET - Centre de Recherche Economique de l'Université de Saint-Etienne - UJM - Université Jean Monnet - Saint-Étienne)

  • Carl Gaigne

    (Unité d'économie et sociologie rurales de rennes - INRA - Institut National de la Recherche Agronomique)

Abstract

Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competition, we show that agglomeration is triggered by technological progress shifting production towards more skill intensive techniques.

Suggested Citation

  • Stéphane Riou & Carl Gaigne, 2007. "Technical Change and Agglomeration," Post-Print hal-00269128, HAL.
    • Handle: RePEc:hal:journl:hal-00269128
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    1. André Sapir & Richard Baldwin & Daniel Cohen & Anthony Venables, 1999. "Market integration, regionalism and the global economy," ULB Institutional Repository 2013/8074, ULB -- Universite Libre de Bruxelles.
    2. Rikard Forslid & Gianmarco I.P. Ottaviano, 2003. "An analytically solvable core-periphery model," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 229-240, July.
    3. Philippe Michel & Anne Perrot & Jacques-François Thisse, 1996. "Interregional equilibrium with heterogeneous labor," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 95-113, February.
    4. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    5. Baldwin,Richard & Cohen,Daniel & Sapir,Andre & Venables,Anthony (ed.), 1999. "Market Integration, Regionalism and the Global Economy," Cambridge Books, Cambridge University Press, number 9780521645898.
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    More about this item

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • F1 - International Economics - - Trade

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