International Trade, Technological Development, and Agglomeration

Karen Helene Midelfart Knarvik and Jostein Tvedt
Authors registered in the RePEc Author Service: Karen Helene Ulltveit-Moe

Review of International Economics, 2000, vol. 8, issue 1, 149-163

Abstract: The paper focuses on how localized dynamic external economies of scale may cause uneven technological development internationally, and encourage regional agglomeration of industries. Location‐specific technological progress depends on the absolute number of local innovating firms, and the relative number of innovating firms; i.e., the share of economic activity in a region that takes place within the innovating sector. The creation of industrial clusters contributes to explaining regional specialization, factor prices and welfare, and it appears that the critical size of a region regarding its ability to sustain an industrial cluster depends on whether factors of production are internationally mobile.

Date: 2000
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https://doi.org/10.1111/1467-9396.00212

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Working Paper: International Trade, Technological Development and Agglomeration (1996)
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