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Growth Cycles -Transformation and regional development

  • Karl-Johan Lundquist

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  • Lars-Olof Olander
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    Departing from the renewed interest within economic history and neo-Schumpeterian perspectives on growth and economic transformation, we will suggest a theoretical framework for analyzing long term regional economic growth and transformation. Emphasis will be given to different driving forces and their various roles over time, lead-lag relations between industries and how divergence and convergence between regions shift cyclically as consequences of technological change, market integration and economic growth. We claim that systemic approaches in general have been neglected in regional science in favor of “neo-regionalism” in the sense that the study of regional growth has been focusing for years on regional innovation systems and cluster theories without any regard to systemic relations at all. Using detailed time series data and applying a systemic approach we will follow Swedish regions from the structural crises in the mid 1970s to the starting point of the present financial crises. Our results suggest that there are time lags as well as systemic spatial asymmetries between industries and regions leading to changing patterns of divergence and convergence in the regional system. Furthermore, there are indications that the regional disparities between centre and periphery have increased compared to the situation in the mid 1970s.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper918.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p918.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p918
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    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. Frank Neffke & Martin Svensson Henning, 2008. "Revealed Relatedness: Mapping Industry Space," DRUID Working Papers 08-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Durlauf,S.N. & Johnson,P.A. & Temple,J.R.W., 2004. "Growth econometrics," Working papers 18, Wisconsin Madison - Social Systems.
      • Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier.
    4. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895.
    5. Frank Neffke & Martin Henning & Ron Boschma & Karl-Johan Lundquist & Lars-Olof Olander, 2011. "The Dynamics of Agglomeration Externalities along the Life Cycle of Industries," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 49-65.
    6. Karl-Johan Lundquist & Lars-Olof Olander & Martin Svensson Henning, 2008. "Creative destruction and economic welfare in Swedish regions: Spatial dimensions of structural change, growth and employment," SRE-Disc sre-disc-2008_03, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    7. Oded Galor, 2005. "Unified Growth Theory," Development and Comp Systems 0504001, EconWPA.
    8. Karl-Johan Lundquist & Lars-Olof Olander & Martin Svensson Henning, 2008. "Decomposing The Technology Shift: Evidence From The Swedish Manufacturing Sector," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 145-159, 04.
    9. Frank Neffke & Martin Svensson Henning, 2009. "Skill-relatedness and firm diversification," Papers on Economics and Evolution 2009-06, Philipps University Marburg, Department of Geography, revised Oct 2010.
    10. Kander, Astrid & Schon, Lennart, 2007. "The energy-capital relation--Sweden 1870-2000," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 291-305, September.
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