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Modelling Complementary in Monopolistic Competition

Listed author(s):
  • Matsuyama, K.

In recent years, monopolistic competition models have frequently been applied in macroeconomics, international and interregional economics, and economic growth and development. In this paper, I present a highly selective review in this area, with special emphasis on the complementarity and its role of generating multiplier processes, agglomeration, underdevelopment traps, regional disparities, and sustainable growth, or more generally, what Myrdal (1957) called the “principle of circular and cumulative causation.”

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Paper provided by Stockholm - International Economic Studies in its series Papers with number 534.

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Length: 30 pages
Date of creation: 1993
Handle: RePEc:fth:stocin:534
Contact details of provider: Postal:
UNIVERSITY OF STOCKHOLM, INSTITUTE FOR INTERNATIONAL ECONOMIC STUDIES, S- 106 91 STOCKHOLM SWEDEN.

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Fax: +46-8-161443
Web page: http://www.iies.su.se/

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