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Space, Growth and Technology: an Integrated Dynamic Approach

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Author Info
Orlando Gomes (Escola Superior de Comunicação Social)

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Abstract

Economic phenomena are interrelated. From a growth perspective, time analysis concerning the choices of present and future consumption and the choices between the allocation of scientific resources should be combined with a space analysis regarding the dissemination of economic activity through geographical locations. This paper intends to present such an integrated approach under a simple endogenous growth model. The determinants of growth are, on one hand, the decisions about how to allocate technological resources and, on the other hand, the strength with which productive activities can agglomerate in order to generate increasing returns to scale. We find that the long run steady state does not have to be a state of unchangeable geography – consumption and production conditions and technological progress not only determine long term growth but also the long term tendency for the economy to geographically concentrate or disperse.

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Paper provided by EconWPA in its series Urban/Regional with number 0409013.

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Length: 30 pages
Date of creation: 28 Sep 2004
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Handle: RePEc:wpa:wuwpur:0409013

Note: Type of Document - pdf; pages: 30
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Web page: http://129.3.20.41

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Related research
Keywords: Optimal control; Economic growth; Technology; Agglomeration economies; Increasing returns;

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Find related papers by JEL classification:
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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    Other versions:
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  19. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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    Other versions:
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