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Growth cycles: transformation and regional development

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  • Karl-Johan Lundquist

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  • Lars-Olof Olander

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    Abstract

    Departing from the renewed interest within economic history and neo-Schumpeterian perspectives on growth and economic transformation, we will suggest a theoretical framework for analyzing long term regional economic growth and transformation. Emphasis will be given to different driving forces and their various roles over time, lead-lag relations between industries and how divergence and convergence between regions shift cyclically as consequences of technological change, market integration and economic growth. We claim that systemic approaches in general have been neglected in regional science in favor of “neoregionalism” in the sense that the study of regional growth has been focusing for years on regional innovation systems and cluster theories without any regard to systemic relations at all. Using detailed time series data and applying a systemic approach we will follow Swedish regions from the structural crises in the mid 1970s to the starting point of the present financial crises. Our results suggest that there are time lags as well as systemic spatial asymmetries between industries and regions leading to changing patterns of divergence and convergence in the regional system. Furthermore, there are indications that the regional disparities between centre and periphery have increased compared to the situation in the mid 1970s.

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    File URL: http://www-sre.wu.ac.at/sre-disc/sre-disc-2010_04.pdf
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    Bibliographic Info

    Paper provided by Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business in its series SRE-Disc with number sre-disc-2010_04.

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    Length: 30 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:wiw:wiwsre:sre-disc-2010_04

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    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.wu-wien.ac.at/ruw/

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
    2. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895, September.
    3. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    4. Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier.
    5. Karl-Johan Lundquist & Lars-Olof Olander & Martin Svensson Henning, 2008. "Decomposing The Technology Shift: Evidence From The Swedish Manufacturing Sector," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 145-159, 04.
    6. Frank Neffke & Martin Svensson Henning, 2008. "Revealed Relatedness: Mapping Industry Space," Papers in Evolutionary Economic Geography (PEEG) 0819, Utrecht University, Section of Economic Geography, revised Dec 2008.
    7. Jones, Larry E. & Manuelli, Rodolfo E., 2005. "Neoclassical Models of Endogenous Growth: The Effects of Fiscal Policy, Innovation and Fluctuations," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 1, pages 13-65 Elsevier.
    8. Frank Neffke & Martin Svensson Henning, 2009. "Skill-relatedness and firm diversification," Papers on Economics and Evolution 2009-06, Philipps University Marburg, Department of Geography, revised Oct 2010.
    9. Oded Galor, 2005. "Unified Growth Theory," Development and Comp Systems 0504001, EconWPA.
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