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.

 

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References

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Published

2002-05-31

Issue

Vol. 60 No. 3-4 (2002)

Section

Research Article

License

Copyright (c) 2002 RuR Editors

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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 Sep. 8];60(3-4):185–194. Available from: https://rur.oekom.de/index.php/rur/article/view/1573
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