Scale economies, regional externalities, and the possibility of uneven regional development

Article Abstract:

A model of regional growth capable of explaining variations in the development of two regions and in which growth patterns are determined by both scale economies (SE) and regional externalities (RE) was developed. The model, which is founded on a modification of Krugman's uneven development paradigm, shows that uneven regional growth occurs when SEs are stronger than REs in both regions. However, stable regional development occurs when the SE-RE relationship is reversed. Finally, the model demonstrates that when SEs are weaker than REs in one region but stronger in the other, growth patterns will display both uneven and stable qualities.

Economic aspects, Externalities (Economics), Community development, Economies of scale

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Industrial centers and regional growth in the presence of local inputs

Article Abstract:

A simple regional growth model which explains the existence of regional centers was developed, based on the observation that nontraded goods and services account for a significant part of regional production. The model illustrates that certain regions eventually become industrial centers due to the positive effects of nontraded intermediate inputs, in the form of locally limited knowledge spillovers, on regional growth. However, other regions can also transform themselves into industrial centers due to interregional knowledge spillovers.

Central places

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Transport costs, intermediate goods, and localized growth

Article Abstract:

A general equilibrium model is used to show the effects of regional specialization in production and interregional trade on economic growth. Regional growth is assumed to be endogenously determined as competition and market size within the region determine the eventual character of industries. The model indicates that integration with more advanced regions is advantageous.

Economic development

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