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The Effects of Technological Progress in Innovative Regions on the Labor Markets of Lagging Regions: A Theoretical Perspective

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  • Oudom Hean

    (College of Business and Challey Institute for Global Innovation and Growth, North Dakota State University, Fargo, ND 58102, USA)

Abstract

The technological effects of innovative regions on lagging regions’ labor markets have not been yet well understood, especially in the urban–rural context. I introduce a theoretical model that yields insight into the interactions between high-technology and lagging regions. While, through knowledge spillovers, urban technology can increase rural jobs, it can also reduce rural employment by raising the competitive advantage of urban firms over rural firms in product market competition. Progress in urban technology also exerts an ambiguous effect of a brain drain on the rural labor market.

Suggested Citation

  • Oudom Hean, 2022. "The Effects of Technological Progress in Innovative Regions on the Labor Markets of Lagging Regions: A Theoretical Perspective," Economies, MDPI, vol. 10(8), pages 1-12, August.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:8:p:197-:d:889368
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    References listed on IDEAS

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