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Technological Progress and Economic Geography

Author

Listed:
  • Takatoshi Tabuchi

    (Faculty of Economics, The University of Tokyo)

  • Jacques-François Thisse

    (CORE, Université catholique de Louvain, NRU-Higher School of Economics and CEPR)

  • Xiwei Zhu

    (Center for Research of Private Economy and School of Economics, Zhejiang University)

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 e¢ ciency when labor productivity rises.

Suggested Citation

  • Takatoshi Tabuchi & Jacques-François Thisse & Xiwei Zhu, 2014. "Technological Progress and Economic Geography," CIRJE F-Series CIRJE-F-915, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2014cf915
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    References listed on IDEAS

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    2. Vera Ivanova & Hanna Vakhitova & Philip Ushchev, 2015. "Occupational choice of migrants: does NEG tell something new?," ERSA conference papers ersa15p951, European Regional Science Association.
    3. Marta Aloi & Joanna Poyago-Theotoky & Frederic Tournemaine, 2018. "Growth and the Geography of Knowledge," CESifo Working Paper Series 6951, CESifo.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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