Technological Change and Industrial Structure Evolution: An Study Based on a Dynamic Development Framework

Abstract

By adding the space cost into the framework of dynamic spatial development theory, a dynamic general equilibrium model including continuous regions was constructed, and Monte Carlo simulation method was applied to explore the relationship between technological change and industrial structure evolution. It is found that the spatial heterogeneity of the initial technological endowment and the process of technological change is an important motive force for the change of the employment structure, the price of land rent and the spatiotemporal evolution of industrial structure. In addition, by analyzing the change process of industrial structure under different conditions of technological change, this paper further analyzed the mechanism of technology diffusion and technological innovation to industrial structure change. It turns out that the change of technological change parameters in the same location will change the speed and intensity of industrial structure evolution, and this effect will generally weaken with the increase of parameter value.