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Does Technological Progress Magnify Regional Disparities?

Author

Listed:
  • Takatoshi Tabuchi
  • Jacques†François Thisse
  • Xiwei Zhu

Abstract

We study how technological progress in manufacturing and migration costs interact to shape the space economy. Rising labor productivity in the manufacturing sector fosters the agglomeration of activities, whereas falling transport costs associated with technological and organizational innovations foster their dispersion. Since these two forces have been at work for a long time, the final outcome must depend on how drops in the costs of producing and trading goods interact with the various costs borne by migrants. Various extensions show the robustness of these conclusions.

Suggested Citation

  • Takatoshi Tabuchi & Jacques†François Thisse & Xiwei Zhu, 2018. "Does Technological Progress Magnify Regional Disparities?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 647-663, May.
    • Handle: RePEc:wly:iecrev:v:59:y:2018:i:2:p:647-663
    DOI: 10.1111/iere.12283
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    Cited by:

    1. Yu Chen & Haoming Shi & Jun Ma & Victor Shi, 2020. "The Spatial Spillover Effect in Hi-Tech Industries: Empirical Evidence from China," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    2. Marta Aloi & Joanna Poyago-Theotoky & Frédéric Tournemaine, 2022. "The Geography of Knowledge and R&D-led Growth [Real effects ofacademic research: comment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1149-1190.
    3. Haiwen Zhou, 2022. "The Choice of Technology and Economic Geography," International Economic Journal, Taylor & Francis Journals, vol. 36(1), pages 1-18, January.
    4. Po-Hao Lu & Jyh-Fa Tsai, 2024. "The footloose entrepreneur model with heterogeneous productivity firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(3), pages 691-710, March.
    5. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    6. Xu Yang & Xuan Zou & Ming Li & Zeyu Wang, 2024. "The Decarbonization Effect of the Urban Polycentric Structure: Empirical Evidence from China," Land, MDPI, vol. 13(2), pages 1-17, February.
    7. Rikard Forslid & Toshihiro Okubo, 2024. "Premature agglomeration?: Two phases of development with spatial sorting," Manchester School, University of Manchester, vol. 92(6), pages 636-662, December.
    8. Vera Ivanova, 2018. "Spatial convergence of real wages in Russian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 1-30, July.
    9. Tabuchi, Takatoshi & Wang, Congcong & Zhu, Xiwei, 2023. "A Model of Economic Growth in China," MPRA Paper 117634, University Library of Munich, Germany.
    10. Lyu, Shuang & Sun, Tieshan & Sun, Xiangyu, 2025. "The effect of high-speed railway connections on economic development in China's peripheral cities: A perspective of innovation capacity," Transport Policy, Elsevier, vol. 171(C), pages 1-17.
    11. Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART 13-02, INRAE UMR SMART.

    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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