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TECHNICAL CHANGE, LOCATION, AND TRADE
Author(s) -
Johansson Börje,
Westin Lars
Publication year - 1987
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1987.tb01050.x
Subject(s) - relocation , competition (biology) , sunk costs , production (economics) , industrial organization , monopoly , product (mathematics) , business , economics , process (computing) , microeconomics , computer science , ecology , geometry , mathematics , biology , programming language , operating system
The difference between the slow adjustment of localized resources and the faster processes of technical change and product renewal causes 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 import structure. The process can he modeled as a chain of import, production, and export cycles with relocation. Conditions for introduction and change of location are analyzed by means of a spatial vintage model.