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Technical change and agglomeration

Author

Listed:
  • Carl Gaigne

    (Unité d'économie et sociologie rurales de rennes - 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)

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
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    Keywords

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    JEL classification:

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

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