Long†run development of a multi†regional economy**This article is the theoretical part of my paper “Regional Development of Japanese Economy: 1956–2006†presented to the Fifth World Congress of RSAI, May 1996, in Tokyo. I thank two anonymous referees for helpful comments, and Professor Keizo Yamane for his technical help

This article analyses models of a multi†regional economy with n regions and m factors, with a Cobb†Douglas or CES production function, and with or without economies of scale and Hicks†neutral technological progress, in which factors are imperfectly mobile as described by a revised gravity model. The article clarifies the incidence of interregional factor mobility, conditions of convergence of interregional per†capita income, the long†run equilibrium regional shares of factors and of income, and the convergence speed. The results are further generalised by explicitly introducing interregional distances.