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Spatial impact of information technology development

Author

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  • Hikaru Ogawa

    (Faculty of Economics, Nagoya University, Furo-Cho, Chikusa-ku, Nagoya 464-8601, Japan)

Abstract

Concentrating on the property of information infrastructure, this paper examines the impact of publicly funded technology development on the spatial allocation of population and social welfare. Information and communication technologies attract much attention as elements of change in regional systems, industrial structures and in determining the allocation of economic activities. In particular, the expansion of information networks is expected to reduce the over-concentration of population in a built up region. In this paper, modeling the network effects and technology effects of information infrastructure supply, we firstly show that technology development may not necessarily encourage the dispersal of economic activities. Secondly, we derive an optimal rule for the central government to develop the infrastructure of information and communication. The results imply that the central government has a key role to play in ensuring the compatibility of household dispersion and an increase in the social welfare.

Suggested Citation

  • Hikaru Ogawa, 2000. "Spatial impact of information technology development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(4), pages 537-551.
    • Handle: RePEc:spr:anresc:v:34:y:2000:i:4:p:537-551
    Note: Received: November 1998/Accepted: November 1999
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    Cited by:

    1. Charlie Karlsson & Gunther Maier & Michaela Trippl & Iulia Siedschlag & Gavin Murphy, 2010. "ICT and Regional Economic Dynamics: A Literature Review," JRC Research Reports JRC59920, Joint Research Centre (Seville site).
    2. Karlsson, Charlie & Rouchy, Philippe, 2013. "Media clusters and metropolitan knowledge economy," Working Paper Series in Economics and Institutions of Innovation 328, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Charlie Karlsson & Robert G. Picard, 2011. "Media Clusters: What Makes them Unique?," Chapters, in: Charlie Karlsson & Robert G. Picard (ed.), Media Clusters, chapter 1, Edward Elgar Publishing.
    4. Kum-Soon Lim & Deok-Joo Lee & Hyung-Sik Oh, 2008. "Strategic investment planning in regional deployment of telecommunication services: a real options approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 391-411, June.

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