The Effects of Technological Progress in Innovative Regions on the Labor Markets of Lagging Regions: A Theoretical Perspective

Oudom Hean ()
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Oudom Hean: College of Business and Challey Institute for Global Innovation and Growth, North Dakota State University, Fargo, ND 58102, USA

Economies, 2022, vol. 10, issue 8, 1-12

Abstract: The technological effects of innovative regions on lagging regions’ labor markets have not been yet well understood, especially in the urban–rural context. I introduce a theoretical model that yields insight into the interactions between high-technology and lagging regions. While, through knowledge spillovers, urban technology can increase rural jobs, it can also reduce rural employment by raising the competitive advantage of urban firms over rural firms in product market competition. Progress in urban technology also exerts an ambiguous effect of a brain drain on the rural labor market.

Keywords: technological progress; knowledge spillovers; brain drain; product market competition (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:10:y:2022:i:8:p:197-:d:889368

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