Technical Change, Location and Trade

• The difference between the slow adjustment of localized resources and the faster processes of technical change and product renewal cause a relocation pressure on existing production. Introduction of new products, techniques and establishments is stimulated by opportunities to attain temporary monopoly profits and is restrained by sunk costs in older vintages and competition for local resources. Introduction is more frequent in nodes with a rich and varied importstructure. The process can be modelledas a chain of import, production and export cycles with relocation. Conditions for introduction and change of location are analysed by means of a spatial vintage model.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

Spatial vintage model

new products

techncial change

relocation

nationalekonomi

Economics

Business and economics

Economics

Publication and Content Type

vet (subject category)

rap (subject category)