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Technical change and agglomeration

Author

Listed:
  • Carl Gaigné

    (INRA, UR122)

  • Stéphane Riou

    (University of Saint-Etienne)

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

  • Carl Gaigné & Stéphane Riou, 2007. "Technical change and agglomeration," Economics Bulletin, AccessEcon, vol. 18(3), pages 1-5.
    • Handle: RePEc:ebl:ecbull:eb-07r10003
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    References listed on IDEAS

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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.
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    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.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

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

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