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Technical Change and Agglomeration

Stephane Riou () and Carl Gaigne

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Abstract: Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competition, we show that agglomeration is triggered by technological progress shifting production towards more skill intensive techniques.

Date: 2007
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00269128
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Published in Economics Bulletin, Economics Bulletin, 2007, 18 (3), pp.1-5

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