Handbook of Regional Growth and Development Theories
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Handbook of Regional Growth and Development Theories

Revised and Extended Second Edition

Edited by Roberta Capello and Peter Nijkamp

Regional economics – an established discipline for several decades – has undergone a period of rapid change in the last ten years resulting in the emergence of several new perspectives. At the same time the methodology of regional economics has also experienced some surprising developments. This fully revised and updated Handbook brings together contributions looking at new pathways in regional economics, written by many well-known international scholars. The aim is to present the most cutting-edge theories explaining regional growth and local development. The authors highlight the recent advances in theories, the normative potentialities of these theories and the cross-fertilization of ideas between regional and mainstream economists. It will be an essential source of reference and information for both scholars and students in the field.
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Chapter 4: Regional growth and trade in the new economic geography and other recent theories

Kieran P. Donaghy


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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