  Recent research in economic theory attempts to study optimal economic growth
and spatial location of economic activity in a unified framework. So far, the
key result of this literature - asymptotic convergence, even in the absence of
decreasing returns to capital - relies on specific assumptions about the
objective of the social planner. We show that this result does not depend on
such restrictive assumptions and obtains for a broader class of objective
functions. We also generalize this finding, allowing for the time-varying
technology parameter, and provide an explicit solution for the dynamics of
spatial distribution of the capital stock.
