Handbook of Regional Growth and Development Theories
Show Less

Handbook of Regional Growth and Development Theories

Edited by Roberta Capello and Peter Nijkamp

Regional economics – an established discipline for several decades – has gone through a rapid pace of change in the past decade and several new perspectives have emerged. At the same time the methodology has shown surprising development. This volume brings together contributions looking at new pathways in regional economics, written by many well-known international scholars. The most advanced theories, measurement methods and policy issues in regional growth are given in-depth treatment.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: Location/Allocation of Regional Growth

Gunther Maier and Michaela Trippl


Gunther Maier and Michaela Trippl 3.1 Introduction In this chapter we look at the spatial distribution of regional growth. The main goal is to analyse the implications that various theories of regional growth have for the spatial distribution of economic activities and the long-term dynamics of the regional economy. Two views will be considered: first, the view of the neoclassical model; second, that of endogenous growth theory and new economic geography. The neoclassical model is briefly presented in section 3.2 of the chapter. Section 3.3 sketches the main features of endogenous growth theory and new economic geography. We will argue that endogenous growth theory and new economic geography apply the same basic logic, namely to introduce externalities into a general equilibrium model. In our view, the introduction of externalities, which according to endogenous growth theory is necessary in order to understand long-term growth processes, is the main innovation of the new theories. The implications of this step, however, are dramatic. We discuss them in sections 3.4 and 3.5 of the chapter. Briefly speaking, externalities lead to non-linearities in the growth process which may generate complex system dynamics including chaotic behaviour. These models call into question most of the results of the neoclassical theory with the corresponding consequences for economic policy. Conclusions are drawn in section 3.6 of the chapter. 3.2 The allocation of growth in the neoclassical model The standard neoclassical model of regional growth serves as a reference model in our discussion. It borrows key elements from...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.