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Technical change and agglomeration

Author

Listed:
  • Carl Gaigne

    (INRA-ESR - Unité d'économie et de sociologie rurales - INRA - Institut National de la Recherche Agronomique)

  • Stéphane Riou

    () (CREUSET - Centre de Recherche Economique de l'Université de Saint-Etienne - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique)

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 Gaigne & Stéphane Riou, 2007. "Technical change and agglomeration," Post-Print halshs-00186767, HAL.
  • Handle: RePEc:hal:journl:halshs-00186767
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00186767
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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

    innovation;

    JEL classification:

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

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