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Space, Growth and Technology: an Integrated Dynamic Approach

  • Orlando Gomes

    (Escola Superior de Comunicação Social)

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 EconWPA in its series Urban/Regional with number 0409013.

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Length: 30 pages
Date of creation: 28 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpur:0409013
Note: Type of Document - pdf; pages: 30
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