Revised and Extended Second Edition
Edited by Roberta Capello and Peter Nijkamp
Chapter 4: Regional growth and trade in the new economic geography and other recent theories
This chapter provides a selective survey of different aspects of the relationship between trade and regional growth that existing theories of trade, agglomeration and fragmentation can help us to understand, and indicates where the frontiers of research on this subject lie. The chapter’s first section provides a discussion of models explicitly relating growth and trade, taken from the literatures on the new (or endogenous) growth theory and the new economic geography. The subsequent section takes up recent efforts to come to terms with growth and the trade in parts and tasks, or fragmentation, which characterizes globalization. Each section discusses several representative papers in detail and several others in summary fashion. The chapter concludes with a brief sketch of a suggested research agenda.
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