Technological Progress and Economic Geography_x0003_
Jacques Thisse,
Takatoshi Tabuchi and
Xiwei Zhu
ERSA conference papers from European Regional Science Association
Abstract:
New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to moving. We show that this neglect is unwarranted. Regardless of the level of transport costs, rising labor productivity fosters the agglomeration of activities, whereas falling transport costs do not affect the location of activities. When labor is heterogeneous, the number of workers residing in the more productive region increases by decreasing order of productive efficiency when labor productivity rises.
Keywords: new economic geography; technological progress; labor productivity; migration costs; labor heterogeneity. Classifcation: (search for similar items in EconPapers)
JEL-codes: J61 R12 (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-eff, nep-geo and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://www-sre.wu.ac.at/ersa/ersaconfs/ersa14/e140826aFinal00276.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa14p276
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().