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Space, growth and technology: an integrated dynamic approach

  • Gomes, Orlando

Economic phenomena are interrelated. From a growth perspective, time analysis concerning the choices of present and future consumption and the choices between the allocation of scientific resources should be combined with a space analysis regarding the dissemination of economic activity through geographical locations. This paper intends to present such an integrated approach under a simple endogenous growth model. The determinants of growth are, on one hand, the decisions about how to allocate technological resources and, on the other hand, the strength with which productive activities can agglomerate in order to generate increasing returns to scale. We find that the long run steady state does not have to be a state of unchangeable geography – consumption and production conditions and technological progress not only determine long term growth but also the long term tendency for the economy to geographically concentrate or disperse.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2846.

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Date of creation: Mar 2006
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Handle: RePEc:pra:mprapa:2846
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  1. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 1998. "Global Income Divergence, Trade and Industrializatiion: The Geography of Growth Take-Offs," NBER Working Papers 6458, National Bureau of Economic Research, Inc.
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  9. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  10. 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.
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  13. Charles I. Jones, . "Population and Ideas: A Theory of Endogenous Growth," Working Papers 98014, Stanford University, Department of Economics.
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  23. Quah, Danny, 2002. "Spatial Agglomeration Dynamics," CEPR Discussion Papers 3208, C.E.P.R. Discussion Papers.
  24. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
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