Table of Contents

Handbook of Alternative Theories of Economic Growth

Handbook of Alternative Theories of Economic Growth

Elgar original reference

Edited by Mark Setterfield

Comprising specially commissioned essays, the Handbook provides a comprehensive overview of alternative theories of economic growth. It surveys major sub-fields (including classical, Kaleckian, evolutionary, and Kaldorian growth theories) and highlights cutting-edge issues such as the relationship between finance and growth, the interplay of trend and cycle, and the role of aggregate demand in the long run.

Chapter 21: Endogenous Regional Growth: A Critical Survey

Mark Roberts and Mark Setterfield

Subjects: economics and finance, evolutionary economics, history of economic thought, post-keynesian economics


Mark Roberts and Mark Setterfield 1 Introduction An important stylised fact of capitalist growth and development is large and persistent differences in per capita income growth between regions.1 Theoretical and empirical analysis of the regional growth process has a history stretching back over more than 50 years, with neoclassical approaches dating back to Borts and Stein (1964) and an emphasis on increasing returns at the regional level going back to Kaldor (1970) and even Marshall (1890/1966). However, traditionally, the subject has been rather marginal to the mainstream of economics. This has begun to change in the last 20 years though, with the mid-1980s renaissance of interest in growth theory sparking a related rise of interest in regional and urban growth processes. In this context, Glaeser (2000) identifies the emergence of a new economics of urban and regional growth, which has been especially influenced by the work of Romer (1986, 1990) and the realisation that cities provide the most natural environment in which to look for evidence of the knowledge spillovers so emphasised by endogenous growth theory (Lucas, 1988).2 The “new economics” literature has mainly been a North American literature, having primarily involved North American academics and/or focused on US regional growth. By contrast, rising interest among European researchers in regional growth processes has come from a different angle. In particular, aided by the development of Eurostat’s REGIO database3 and stimulated by deepening European integration, European researchers have been quick to apply advances in spatial econometrics to the analysis of...

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