A simple dynamic model of uneven development and overtaking

Klaus Desmet

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: This paper extends the Brezis, Krugman and Tsiddon (1993) Ricardian leapfrogging model, allowing for a wider variety of development patterns. In a two-region two-sector economy localized leaming-by-doing causes specialization and uneven development. Technological change reverses the existing development pattern if the new technology locates in the lowwage region. However, in contrast to Brezis et al., the development pattern may also get reinforced if spillovers between the old and the new technology make the leading region a more attractive location. The results are not affected by including capital and extending the model to a two-factor Heckscher-Ohlin framework.

Keywords: Localized; externalities; Trade; and; growth; Regional; growth; Uneven; development; Structural; change (search for similar items in EconPapers)
Date: 1999-02
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Journal Article: A Simple Dynamic Model of Uneven Development and Overtaking (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:6130

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