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A Synoptic View of Regional Growth and Unemployment: II —The Post-Keynesian Theory

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  • J.S.L. McCombie

    (Department of Economics and Commerce, University of Hull, Hull)

Abstract

This paper discusses the post-Keynesian explanation of the causes of disparities in regional growth and unemployment rates. It begins by examining the relationship between the real wage rate, the level of demand and regional unemployment. Next, it shows how regional growth is primarily determined by the rate of growth of exports. A two-region model is outlined which demonstrates how regional growth rates are interrelated through interregional trade flows and the regional balance of payments constraint. The paper concludes with a discussion of the cumulative causation theory of regional growth.

Suggested Citation

  • J.S.L. McCombie, 1988. "A Synoptic View of Regional Growth and Unemployment: II —The Post-Keynesian Theory," Urban Studies, Urban Studies Journal Limited, vol. 25(5), pages 399-417, October.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:5:p:399-417
    DOI: 10.1080/00420988820080531
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    References listed on IDEAS

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    1. Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
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    9. A. P. Thirlwall, 2015. "A Model of Regional Growth Rate Differences on Kaldorian Lines," Palgrave Studies in the History of Economic Thought, in: Essays on Keynesian and Kaldorian Economics, chapter 12, pages 286-301, Palgrave Macmillan.
    10. McCombie, J S L & de Ridder, J R, 1984. ""The Verdoorn Law Controversy": Some New Empirical Evidence Using U.S. State Data," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 268-284, June.
    11. John S. L. McCombie, 1987. "Keynes and the Nature of Involuntary Unemployment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(2), pages 202-215, December.
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    Cited by:

    1. Edward Feser & Stuart Sweeney, 2003. "Out-Migration, Depopulation, And The Geography Of U.S. Economic Distress," International Regional Science Review, , vol. 26(1), pages 38-67, January.
    2. John Glasson, 1992. "The Fall and Rise of Regional Planning in the Economically Advanced Nations," Urban Studies, Urban Studies Journal Limited, vol. 29(3-4), pages 505-531, May.
    3. J.S.L. McCombie, 1988. "A Synoptic View of Regional Growth and Unemployment: I - The Neoclassical Theory," Urban Studies, Urban Studies Journal Limited, vol. 25(4), pages 267-281, August.
    4. Mäki-Arvela, Petteri, 2002. "Testing the Neoclassical Model of Regional Economic Growth: A Panel Data Approach across the Finnish Provinces, 1973-1996," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 223-253, Summer/Fa.
    5. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    6. Elias G. Carayannis & Rajiv Mallick, 1996. "Regional Income Disparities In Canada: Implications For Theories Of Regional Convergence," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 55-74, Summer.
    7. David Gray, 2019. "Medium-term cycles and housing: Is regional integration different?," Urban Studies, Urban Studies Journal Limited, vol. 56(9), pages 1786-1800, July.
    8. Jun Koo & Somik Lall, 2007. "New Economic Geography: Real or Hype?," International Regional Science Review, , vol. 30(1), pages 3-19, January.

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