Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10482373 | Regional Science and Urban Economics | 2005 | 28 Pages |
Abstract
We extend the standard economic geography model by introducing regional differences in technology levels and by assuming that initial technological gaps may be closed only when the learning capabilities of the lagging region are sufficiently developed. Interregional knowledge spillovers take place only when the initial technological gap is not too wide, and when trade costs, taken as a proxy for the obstacles to interaction between firms of different regions, are sufficiently low. Hence, low trade costs may produce either the agglomeration or the dispersion of the modern sector, while high trade costs lead to its agglomeration in the leading region.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Antonella Nocco,