Regional Economic Inequality, Growth Theory and Technological Change
AbstractThis theoretical paper examines the contributions of the neo-classical approach to the explanation of deep and persistent geographical inequalities in economic development. Central insights of each approach are combined in a model of regional economic inequality, here defined as differences in regional labour productivity. The model attempts to combine theoretical insights from approaches that are usually considered to be incompatible. At the core of the model are the concepts of embodied and disembodied technical change. These concepts are related to differences in regional socio-economic environments and they indicate avenues of explanation of regional differences in levels of labour productivity and the relative permanence of these differences. Disembodied technical progress is related to positive externalities and spillover effects, these being inherently spatial. The paper also indicates a formulation of the model that permits empirical operationalisation.
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Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9903.
Date of creation: Oct 1999
Date of revision:
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More information through EDIRC
Regional inequality; technical change; regional production functions;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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