TY  - JOUR
AU  - Leamer,Edward E.
AU  - Storper,Michael
TI  - The Economic Geography of the Internet Age
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8450
PY  - 2001
Y2  - August 2001
UR  - http://www.nber.org/papers/w8450
L1  - http://www.nber.org/papers/w8450.pdf
N1  - Author contact info:
Edward E. Leamer
John E. Anderson Graduate School of Management
UCLA
Box 951481
Los Angeles, CA 90095-1481
Tel: 310/206-1452
Fax: 310/825-4011
E-Mail: edward.leamer@anderson.ucla.edu

michael storper
E-Mail: m.storper@lse.ac.uk
AB  - This paper combines the perspective of an international economist with that of an economic geographer to reflect on how and to what extent the Internet will affect the location of economic activity. Even after the very substantial transportation and communication improvements during the 20th Century, most exchanges of physical goods continue to take place within geographically-limited 'neighborhoods.'   Previous rounds of infrastructure improvement always have had a double effect, permitting dispersion of certain routine activities but also increasing the complexity and time-dependence of productive activity, and thus making agglomeration more important.   We argue that the Internet will produce more of the same  forces for deagglomeration, but offsetting and possibly stronger tendencies toward agglomeration.  Increasingly the economy is dependent on the transmission of complex uncodifiable messages, which require understanding and trust that historically have come from .face-to-face contact.  This is not likely to be affected by the Internet, which allows long distance 'conversations' but not 'handshakes.'
ER  -