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Analysis of regional endogenous growth


  • R. Basile
  • S. Usai



Endogenous growth theory has deeply influenced regional growth analyses and inspired regional development policies. Evidence of lack of convergence, club convergence and spatial polarization of per worker income levels has led scholars to question the explanatory power of neoclassical exogenous growth models and to look at endogenous growth theories as proper frameworks to interpret regional development. In particular, those models, which emphasize the role of knowledge spillovers as driving forces for economic growth and identify a large set of self- reinforcing mechanisms that can potentially cause low-productivity traps, have become central in the scientific debate. Only during the last ten years, however, there have been some analytical attempts to regionalize endogenous growth theory. This paper provides a critical survey of the growing literature on regional extensions of endogenous growth analysis. The focus is on those theoretical and empirical studies which have tried to explain lack of regional convergence, multiple equilibria and spatial polarization. The paper also suggests some directions for future research in this field.

Suggested Citation

  • R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  • Handle: RePEc:cns:cnscwp:201211

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    Cited by:

    1. Francesco Quatraro & Stefano Usai, 2017. "Are knowledge flows all alike? Evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1246-1258, August.

    More about this item


    regional analysis; endogenous growth;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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