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Kaldor's 1970 Regional Growth Model Revisited

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  • A.P.Thirlwall

Abstract

Kaldor's 1970 paper 'The Case for Regional Policies' was republished in the sixtieth anniversary volume of the Scottish Journal of Political Economy. This paper reflects on the model after more than forty years, and argues that even though it has been criticised for its deterministic nature, it has lost none of its relevance. It predates the ideas of so-called 'new' growth theory, and the new economic geography of Krugman, and provides at least a partial explanation of why growth rates and levels of per capita income between regions and between countries can continue to persist and even widen in contrast to the predictions of orthodox equilibrium theory.

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  • A.P.Thirlwall, 2013. "Kaldor's 1970 Regional Growth Model Revisited," Studies in Economics 1311, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1311
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    1. Aditya Bhattacharjea, 2010. "Did Kaldor anticipate the New Economic Geography? Yes, but..," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(6), pages 1057-1074.
    2. Philip Arestis & John S.L. McCombie & Roger Vickerman (ed.), 2006. "Growth and Economic Development," Books, Edward Elgar Publishing, number 3463.
    3. Roger J. Sandilands, 1990. "Nicholas Kaldor’s Notes on Allyn Young’s LSE Lectures 1927-29," Journal of Economic Studies, Emerald Group Publishing, vol. 17(3/4), December.
    4. Argyrous, George, 2001. "Setterfield on Cumulative Causation and Interrelatedness: A Comment," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(1), pages 103-106, January.
    5. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
    6. Miguel A. LeÛn-Ledesma, 2002. "Accumulation, innovation and catching-up: an extended cumulative growth model," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(2), pages 201-216, March.
    7. A. P. Thirlwall, 2013. "Commentary on Kaldor's 1970 Regional Growth Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 492-494, November.
    8. A. P. Thirlwall, 2007. "Regional Problems are "Balance-of-Payments" Problems," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 89-95.
    9. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    10. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague.
    11. A. P. Thirlwall, 1982. "The Harrod Trade Multiplier And The Importance Of Export-Led Growth," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 1(1), pages 1-21.
    12. Setterfield, Mark, 1997. "'History versus Equilibrium' and the Theory of Economic Growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(3), pages 365-378, May.
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    Cited by:

    1. Alexandre Gomes, 2020. "Regional economic growth in China from a Kaldorian perspective: A comparative study of Nanjing and Suzhou," PSL Quarterly Review, Economia civile, vol. 73(295), pages 283-312.
    2. Mihaela-Nona, CHILIAN & Mihaela, SIMIONESCU & Marioara, IORDAN, 2014. "Determinants Of Regional Competitiveness In Romania - A Panel Data Approach," Management Strategies Journal, Constantin Brancoveanu University, vol. 26(4), pages 13-20.
    3. A. P. Thirlwall, 2013. "Commentary on Kaldor's 1970 Regional Growth Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 492-494, November.
    4. Wirginia Aksztejn, 2020. "Local Territorial Cohesion: Perception of Spatial Inequalities in Access to Public Services in Polish Case-Study Municipalities," Social Inclusion, Cogitatio Press, vol. 8(4), pages 253-264.
    5. Stavroula DIMKOU & George MAKRIS, 2017. "Financial Sector And Growth Process In South-Eastern Europe'S Former Socialist Countries: Could A Kaldorian Cumulative Causation Approach Help To Better Understand The Links Between Them?," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 16(1), pages 60-73.

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    More about this item

    Keywords

    Regional Growth; Kaldor; Uneven Development; Cumulative Causation;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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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