Implications of New Growth Theory for a policy aiming at regional equity Authors Johannes Bröcker Institut für Regionalforschung der, Christian-Albrechts-Universität zu Kiel, 24098, Kiel DOI: https://doi.org/10.1007/BF03183052 Keywords: Article Abstract According to New Growth Theory one can not rely on the convergence mechanisms inherent in traditional constant returns to scale models in neoclassic. Convergence as well as divergence is possible, in general, depending on the assumptions about technology, factor mobility and ease of knowledge diffusion. The paper shows by a two-regions endogenous growth model when divergence, convergence or stable centre-periphery structure emerges. Based on this model, regional policy aiming at regional equity — though desirable for distributive reasons — contradicts the efficiency objective: as far as the spatial allocation in market equilibrium is inefficient at all, more inequality rather than less is required to enhance efficiency. Downloads Download data is not yet available. References Aghion, P.; Howitt, P. (1998): Endogenous growth theory. Cambridge, Mass.: MIT Press Baldwin, R.E. (2001): Core-periphery model with forward-looking expectations. In: Regional Science and Urban Economics, 31, S. 21–49 Barro, R.J.; Sala i Martin, X. (1995): Economic Growth. New York: McGraw-Hill Borts, G.; Stein, J. (1964): Economic Growth in a Free Market. New York: Columbia University Press Bröcker, J. (1998): Konvergenz in Europa und die Europäische Währungsunion. In: Fischer, B.; Straubhaar (Hrsg.): Konvergenz in Theorie und Praxis, S. 105–135, Baden-Baden: Nomos Fujita, M.; Krugman, P.R.; Venables, A.J. (1999): The spatial economy: cities, regions and international trade. Cambridge, Mass.: MIT Press Grossmann, G.M.; Helpman, E. (1992): Innovation and Growth in the Global Economy. Cambridge, Mass.: MIT Press Jaffe, A.; Trajtenberg, M.; Henderson, R. (1993): Geographic localization of knowledge spillovers as evidenced by patent citations. In: Quarterly Journal of Economics, 108, S. 577–598 Kaldor, N. (1970): The case of regional policies. In: Scottish Journal of Political Economy, 18, S. 337–348 Krugman, P. (1991): Geography and Trade. London: MIT Press and Leuven University Press Krugman, P. (1998): What’s new about the new economic geography? In: Oxford Review of Economic Policy, 14, S. 7–17 Myrdal, G. (1959): Okonomische Theorie und unterentwickelte Regionen. Stuttgart: Gustav Fischer Ottaviano, G.I.P. (1998): Dynamic and strategic considerations in international and interregional trade. PhD thesis, Université Catholique de Louvain, Faculté des Sciences Économiques, Sociales et Politiques, N.S. No. 322 Romer, P.M. (1986): Increasing returns and long run growth. In: Journal of Political Economy, 94, S. 1002–1037 Romer, P.M. (1990): Endogenous technological chance. In: Journal of Political Economy, 98, S. 71–102 Solow, R.M. (1956): A contribution to the theory of economic growth. In: Quarterly Journal of Economics, 70, S. 65–94 Starrett, D. (1978): Market allocations of location choice in a model with mobility. In: Journal of Economic Theory, 17, S. 21–37 Tondl, G. (1999): The changing pattern of regional convergence in Europe. In: Jahrbuch für Regionalwissenschaft, 19, S. 1–33 Walz, U. (1999): Dynamics of regional integration. Heidelberg: Physica Downloads PDF (German) Published 2002-05-31 Issue Vol. 60 No. 3-4 (2002) Section Research Article License Copyright (c) 2002 RuR Editors This work is licensed under a Creative Commons Attribution 3.0 Unported License. Articles in Raumforschung und Raumordnung – Spatial Research and Planning are published under a Creative Commons license. From Vol. 79 No. 2 (2021), the license applied is CC BY 4.0. From Vol. 77 No. 1 to Vol. 79 No.1, articles were published under a CC BY-SA license. Earlier volumes have been re-published by oekom 2022 under the Creative Commons Attribution 4.0 International License CC BY 4.0. How to Cite 1.Bröcker J. Implications of New Growth Theory for a policy aiming at regional equity. RuR [Internet]. 2002 May 31 [cited 2024 Apr. 25];60(3-4):185–194. Available from: https://rur.oekom.de/index.php/rur/article/view/1573 More Citation Formats ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX
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