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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
    as

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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Skill-biased change economic geography;

    JEL classification:

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

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