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Knowledge externalities and growth in peripheral regions: introductory notes

  • Fabiana Santos


  • Marco Crocco


  • Frederico G. Jayme Jr


The aim of this paper is to discuss the idea that knowledge externalities, as discussed in the Endogenous Growth Theory, can be spread over any kind of space. Although this point has already been discussed by some scholars in the heterodox tradition (Nelson, 1998, Martin and Sunley, 1998, among others), we would like to bring into discussion a new perspective that analyses the validity of this assumption in peripheral regions/countries. It will be argued that there are some peripheral structural conditions that constrain the generation, transfer and absorption of knowledge externalities. Above of all, it will be argued that the construction of “space” in the periphery is determinant for the absence of widespread diffusion of this kind of externality. This conclusion implies that the generality of the New Growth Theory is very difficult to be assumed.

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Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td278.

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Length: 18 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:cdp:texdis:td278
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  1. Nelson, Richard R, 1998. "The Agenda for Growth Theory: A Different Point of View," Cambridge Journal of Economics, Oxford University Press, vol. 22(4), pages 497-520, July.
  2. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
  3. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
  4. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  6. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
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