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Space, Growth and Technology: an Integrated Dynamic Approach

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  • Orlando Gomes

    (Escola Superior de Comunicação Social)

Abstract

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.

Suggested Citation

  • Orlando Gomes, 2004. "Space, Growth and Technology: an Integrated Dynamic Approach," Urban/Regional 0409013, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0409013
    Note: Type of Document - pdf; pages: 30
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    References listed on IDEAS

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    More about this item

    Keywords

    Optimal control; Economic growth; Technology; Agglomeration economies; Increasing returns;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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