Localized technological externalities and the geographical distribution of firms

Arbeitspapier

Using an analytically solvable equilibrium model, we study how the distribution of economic activities is affected by the trade-off between pecuniary externalities, as dependent on transportation costs, and localized technological externalities, as dependent on inter-regional spillovers. We model localized technological externalities as having a cost saving effect that can be interpreted both as a tangible technological advantage, like the presence of a stronger industrial infrastructure, and as an intangible advantage, like a more efficient labour force composition or the presence of some inter-firms knowledge spillover. Under the assumption of capital mobility and labour immobility, we show that whereas decreasing transportation costs, i.e. promoting market openness, leads to sudden agglomeration, increasing inter-regional spillovers, i.e. promoting technological openness, favors a smoother transition between different levels of firms concentration and ultimately leads to a less uneven distribution of welfare.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: LEM Working Paper Series ; No. 2008/11

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration ; Size and Spatial Distributions of Regional Economic Activity
• Thema: New Economic Geography ; Agglomeration ; Footloose capital models ; Technological externalities ; Market and technological openness ; Industriegeographie ; Wirtschaftsgeographie ; Agglomerationseffekt ; Raumwirtschaftstheorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bottazzi, Giulio ; Dindo, Pietro
• Ereignis: Veröffentlichung
• (wer): Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
• (wo): Pisa
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/89330
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ