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Shifts in economic geography and their causes

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  • Venables, Anthony J.

Abstract

This paper analyses some of the forces that are changing the spatial distribution of activity in the world economy. It draws on the 'new economic geography' literature to argue the importance of increasing returns to scale and cumulative causation processes in shaping the productivity and comparative advantage of different regions. In the presence of such increasing returns there may be persistent spatial disparities in productivity. Economic development will tend to be 'lumpy', with some regions (countries, or smaller areas such as cities) experiencing rapid growth and others being left behind.

Suggested Citation

  • Venables, Anthony J., 2006. "Shifts in economic geography and their causes," LSE Research Online Documents on Economics 19774, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:19774
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    File URL: http://eprints.lse.ac.uk/19774/
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    References listed on IDEAS

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    Cited by:

    1. Jang P. Thia, 2016. "Trade and Urbanisation," The World Economy, Wiley Blackwell, vol. 39(6), pages 853-872, June.
    2. World Bank, 2014. "Well-being from Work in the Pacific Island Countries," World Bank Publications, The World Bank, number 18642, April.
    3. Oulton, Nicholas, 2008. "Chain indices of the cost-of-living and the path-dependence problem: An empirical solution," Journal of Econometrics, Elsevier, vol. 144(1), pages 306-324, May.
    4. James Foreman-Peck & Tom Nicholls, 2015. "Inter-regional mobility of entrepreneurial SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 57-87, January.
    5. Roman Römisch, 2012. "Foreign Trade and FDI in the Austrian Regions – A new methodology to estimate regional trade and an analysis of the crisis effects," FIW Research Reports series IV-001, FIW.
    6. Finn Martensen, 2013. "Globalization, Unemployment, and Product Cycles: Short- and Long-Run Effects," Working Paper Series of the Department of Economics, University of Konstanz 2013-16, Department of Economics, University of Konstanz.
    7. Andreas Breitenfellner & Jesus Crespo Cuaresma & Peter Mooslechner & Doris Ritzberger-Grünwald, 2008. "The Impact of EU Enlargement in 2004 and 2007 on FDI and Migration Flows Gravity Analysis of Factor Mobility," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 101-120.
    8. Dinopoulos, Elias & Segerstrom, Paul, 2010. "Intellectual property rights, multinational firms and economic growth," Journal of Development Economics, Elsevier, vol. 92(1), pages 13-27, May.
    9. repec:spr:manint:v:48:y:2008:i:4:d:10.1007_s11575-008-0025-9 is not listed on IDEAS
    10. repec:wsr:ecbook:2010:i:iv-001 is not listed on IDEAS
    11. Thia, Jang Ping, 2008. "Why capital does not migrate to the south: a new economic geography perspective," LSE Research Online Documents on Economics 28508, London School of Economics and Political Science, LSE Library.
    12. repec:wbk:wbpubs:28041 is not listed on IDEAS
    13. Agliari, Anna & Commendatore, Pasquale & Foroni, Ilaria & Kubin, Ingrid, 2015. "Agglomeration dynamics and first nature asymmetries," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 108(C), pages 81-98.
    14. Jang Ping Thia, 2011. "Evolution of locations, specialisation and factor returns with two distinct waves of globalisation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(4), pages 535-568.

    More about this item

    Keywords

    economic geography; urbanisation; world economy; productivity;

    JEL classification:

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

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