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 20: Investigating endogenous regional performance

Robert J. Stimson, William Mitchell, Michael Flanagan and Alistair Robson


This chapter reviews the role of endogenous factors in regional economic development that has received much attention following the development of the new growth theory. It refers specifically to the development of a new approach to modelling endogenous regional employment performance, which has been applied over a succession of decadal periods in Australia to identify the factors that explain spatial variations in that dependent performance variable across the nation. In particular, the chapter discusses the advantages of using a functional regions as against the usual de jure regions in addressing the spatial autocorrelation issue typically encountered when using the latter spatial base in spatial econometric modelling. The chapter provides some thoughts on the emergence of a new paradigm for regional economic development analysis and planning and the insights gained from the model applications in Australia.

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