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Please use this identifier to cite or link to this item: http://hdl.handle.net/10016/6130

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Title: A simple dynamic model of uneven development and overtaking
Author(s): Desmet, Klaus [desmet]
Publisher: Universidad Carlos III de Madrid. Departamento de Economía
Issued date: Feb-1999
URI: http://hdl.handle.net/10016/6130
Abstract: This paper extends the Brezis, Krugman and Tsiddon (1993) Ricardian leapfrogging model, allowing for a wider variety of development patterns. In a two-region two-sector economy localized leaming-by-doing causes specialization and uneven development. Technological change reverses the existing development pattern if the new technology locates in the lowwage region. However, in contrast to Brezis et al., the development pattern may also get reinforced if spillovers between the old and the new technology make the leading region a more attractive location. The results are not affected by including capital and extending the model to a two-factor Heckscher-Ohlin framework.
Serie / Nº.: UC3M Working papers. Economics
99-11
Other version: http://hdl.handle.net/10016/4795
Keywords: Trade and growth
Regional growth
Uneven development
Localized externalities
Structural change
Appears in Collections:DE - Working Papers. Economics. WE
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