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Carl Gaigné and Stéphane Riou |
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''Technical change and agglomeration'' |
( 2007, Vol. 18 No.3 ) |
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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. |
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Keywords: Skill-biased change economic geography |
JEL: R1 - General Regional Economics (includes Regional Data) F1 - Trade: General |
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Manuscript Received : Apr 03 2007 | | Manuscript Accepted : Apr 10 2007 |
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