IT adoption and spatial agglomeration - a model of cumulative adoption in a small open economy
I develop a model of cumulative ICT investments in a small open economy framework with differenciated inputs and imperfect competition borrowed to Ciccone and Matsuyama (1996). Within this framework, fixed adoption costs and pecuniary externalities based on strategic complementarities between users and producers of ICT-related inputs are what allow for agglomeration economies in ICT investments despite the abscence of transport costs. Moreover, expectations and the way alternative industrial structures allow them to be coordinated (monopolistic competition versus horizontally integrated monopoly) are key determinants of the likelyhood of an economic catching-up based on the intensive adoption of ICT inputs. Actually, three alternative growth paths with very different long-run outcome are allowed to emerge : 1) a “no-growth path” path in which the economy is trapped into primitive production processes; 2) a “transitory high growth path” in which the region underwents a process of adjustment to technological change and modernize its production processes by intensively adopting imported ICT-related inputs; 3) a “miracle growth path” where the regional economy find the adequate incentives not only to intensively adopt imported ICT inputs but also to develop and produce new ICT inputs.
|Date of creation:||Aug 2005|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dale W. Jorgenson & Kevin J. Stiroh, 2000.
"Raising the Speed Limit: U.S. Economic Growth in the Information Age,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
- Sanghoon Ahn & Philip Hemmings, 2000. "Policy Influences on Economic Growth in OECD Countries: An Evaluation of the Evidence," OECD Economics Department Working Papers 246, OECD Publishing.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Quah, Danny, 2000.
"Internet cluster emergence,"
European Economic Review,
Elsevier, vol. 44(4-6), pages 1032-1044, May.
- Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD Publishing.
- Robert J. Gordon, 2000.
"Does the "New Economy" Measure up to the Great Inventions of the Past?,"
NBER Working Papers
7833, National Bureau of Economic Research, Inc.
- Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
- Gordon, Robert J, 2000. "Does the 'New Economy' Measure up to the Great Inventions of the Past?," CEPR Discussion Papers 2607, C.E.P.R. Discussion Papers.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977.
"Monopolistic Competition and Optimum Product Diversity,"
American Economic Review,
American Economic Association, vol. 67(3), pages 297-308, June.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
- van Ark, Bart, 2002. "Measuring the New Economy: An International Comparative Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 1-14, March.
- J.Peter Neary, 2001.
"Of Hype and Hyperbolas: Introducing the New Economic Geography,"
Journal of Economic Literature,
American Economic Association, vol. 39(2), pages 536-561, June.
- J. Peter Neary, 2000. "Of hype and hyperbolas : introducing the new economic geography," Working Papers 200019, School of Economics, University College Dublin.
- Krugman, Paul & Venables, Anthony J., 1995.
"Globalization and the Inequality of Nations,"
Working Paper Series
430, Research Institute of Industrial Economics.
- Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
- Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
- Karl Whelan, 2002.
"Computers, Obsolescence, And Productivity,"
The Review of Economics and Statistics,
MIT Press, vol. 84(3), pages 445-461, August.
- Karl Whelan, 2000. "Computers, obsolescence, and productivity," Open Access publications 10197/244, School of Economics, University College Dublin.
- Karl Whelan, 2000. "Computers, obsolescence, and productivity," Finance and Economics Discussion Series 2000-06, Board of Governors of the Federal Reserve System (U.S.).
- Karl Whelan, 2002. "Computers, obsolescence, and productivity," Open Access publications 10197/204, School of Economics, University College Dublin.
- Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
- Jacques Mairesse & Gilbert Cette & Yussuf Kocoglu, 2000. "Les technologies de l'information et de la communication en France : diffusion et contribution à la croissance," Économie et Statistique, Programme National Persée, vol. 339(1), pages 117-146.
- Fujita, Masahisa & Hamaguchi, Nobuaki, 2001. "Intermediate goods and the spatial structure of an economy," Regional Science and Urban Economics, Elsevier, vol. 31(1), pages 79-109, February.
- Arthur, W. Brian, 1990. "'Silicon Valley' locational clusters: when do increasing returns imply monopoly?," Mathematical Social Sciences, Elsevier, vol. 19(3), pages 235-251, June.
- Koski, Heli & Rouvinen, Petri & Yla-Anttila, Pekka, 2001.
"ICT Clusters in Europe. The Great Central Banana and the Small Nordic Potato,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.
- Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
- repec:hhs:iuiwop:430 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p731. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.