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This paper explores how the optimal mode of public finance depends on the level of economic development. The theoretical analysis suggests that in the presence of capital market imperfection and liquidity shocks, the detrimental effect of inflation on growth is stronger (weaker) at lower (higher) levels of economic development. Consequently, income taxation (seigniorage) is a relatively less distortionary way of financing public expenditure for low-income (high-income) countries. We provide empirical support for our model’s predictions using a panel of 21 Organization for Economic Cooperation and Development countries and 40 developing countries observed over the period 1972–1999. ( JEL E44, E6, H6, O42) [ABSTRACT FROM AUTHOR]

This account of the recent conflict in Solomon Islands, based on personal experience, offers a local Malaitan perspective on the historical causes and course of events which has not been well represented in other published accounts. It describes the Malaitan settlement of Guadalcanal and the failure of government to deal with the resulting grievances in terms of traditional values which also informed the author's own responses to the conflict and its resolution. The Malaitan community is shown as forced into politically-manipulated militancy through neglect of the conciliatory role of clan leaders as chiefs. As a perspective from one side of the conflict, the paper invites responses and discussion of indigenous histories. [ABSTRACT FROM AUTHOR]

The imperative to engage with communities and employ a community development approach is an integral part of the national agenda under New Labour. However, a large part of the literature and experience that informs contemporary policy and practice draws on the urban realm. This paper draws on the evaluation of a rural Health Action Zone to explore the extent to which national policy can facilitate local approaches to community health development within a rural context. Despite avowed support for innovation and evidence-based learning, it finds a continued emphasis on consensual tactics, low-cost solutions and traditional methods of ranking deprivation. [ABSTRACT FROM AUTHOR]

Amid the globalization of economic life and a myriad of powerful challenges to Westphalian traditions of political statehood, it is now routinely contended that regions are‘in resurgence’. Nonetheless, much of the debate on this purported regional renaissance is bedevilled by confusion over what scholars and activists mean by regions and an analogous mystification as to why some regions are‘successful’,‘lagging’ or‘different’. Our paper aims to instil some coherence to this debate by distinguishing between what we termregional spacesandspaces of regionalism. It then draws on this distinction to explore the institutionalization of England's South West region, highlighting some tensions which prevail over its economic future, its political representation, its territorial shape and cultural vernacular. In undertaking this, we demonstrate how the formation of any given regional map is reflective– and indeed constitutive– of an unevenly developing, often overlapping and superimposing mosaic of economic practices, political mobilizations, cultural performances and institutional accomplishments. This prompts us to question the currently fashionable inclination to fully jettison a scalar and/or territorial approach to the theory and practice of spatiality in favour of relational/topological/non-territorial approaches. [ABSTRACT FROM AUTHOR]

Recent literature concerning regional development has placed significant emphasis on local institutional structures and their capacity to‘hold down’ the global. Conversely, work on inter-firm networks– such as the global commodity chain approach– has highlighted the significance of the organizational structures of global firms’ production systems and their relation to industrial upgrading. In this paper, drawing upon a global production networks perspective, we conceptualize the connections between‘globalizing’ processes, as embodied in the production networks of transnational corporations, and regional development in specific territorial formations. We delimit the‘strategic coupling’ of the global production networks of firms and regional economies which ultimately drives regional development through the processes of value creation, enhancement and capture. In doing so, we stress the multi-scalarity of the forces and processes underlying regional development, and thus do not privilege one particular geographical scale. By way of illustration, we introduce an example drawn from recent research into global production networks in East Asia and Europe. The example profiles the investments of car manufacturer BMW in Eastern Bavaria, Germany and Rayong, Thailand, and considers their implications for regional development. [ABSTRACT FROM AUTHOR]

This paper argues that the Indonesia–Malaysia–Singapore Growth Triangle makes manifest the complex geographies of power that subvert efforts to read cross-border regionalization as a straightforward geographical corollary of‘globalization’. As such, the region needs to be examined not simply as a complementary transborder assemblage of land, labour and capital, but rather as a palimpsest in which the imagined geographies of cross-border development and the economic geographies of their uneven spatial fixing on the ground are mediated by complex cultural and political geographies. We seek to unpack these by triangulating how the geographies of capital (including its uneven development and its links to the geo-economics of intra-regional competition), land (including post-colonial relations across the region, the geopolitics of land reclamation and the enclaved landscapes of tourism) and labour (including the divergent itineraries of migrant workers) overlay and complicate one another in the region. By charting these complex triangulations of space and place, we seek to problematize narratives of the Growth Triangle as an exemplary embodiment of the‘borderless world’. [ABSTRACT FROM AUTHOR]

Research evidence and pleas that humans are undermining their own survival on a robust and unforgiving planet seem to be falling on deaf ears. The drive for economic and military security remains more powerful than the evidence that both of these objectives are being undermined by environmental damage, social disruption, unjust treatment and forced migration. Yet the signs are growing that environmentally and socially sound futures may be vital prerequisites for economic and military stability. So, at the heart of multi-nationalism, sustainable development is beginning to be recognized as a crucial element in reliable international agreements. The consequence of all this is that environmental science has become highly political, and geographers need to recognize and work within an expanding political process. Examples of new forms of governing via sustainability science for sustainable futures are offered in the latter part of the paper, especially at local government level. The antagonistic pressures of established power and economic hegemony are never far away. Indeed, the confirmation of these established patterns of power still pervades the politics of environmental science. But it is possible that these antagonistic political frameworks are beginning to be transcended by the more influential aspects of sustainability partnerships incorporating new arrangements between government, private capital and civil associations. These partnerships will not be easy to create, for they criss-cross boundaries of familiarity and rules of operation. But geographers can play a critical role in helping to shape them and assess the best circumstances for ensuring their success. [ABSTRACT FROM AUTHOR]

Are the independent economic activities of poor people “petty commodity production”—an informal way to earn a subsistence wage? Or are they “microentrepreneurship”, a launching point for capital accumulation and growth? This paper draws on fieldwork in Bolivia, Peru and Guatemala, focusing specifically on the poorest businesses. In–depth interviews indicate that even the smallest–scale producers, merchants and service providers have goals of “improving” their business and “growing” their capital, not unlike their capitalist counterparts. Yet, while growth is desirable, maintaining one’s business as a steady source of income is a sufficient achievement for many. Poor self–employed people are both “labourers” and “entrepreneurs”; the key macro–level question becomes, not “Do petty–commodity producers have different goals than capitalist entrepreneurs”, but “What resources are lacking, and what obstacles exist, that keep many microentrepreneurs in low–yield activities, with little opportunity to grow their resources?”. [ABSTRACT FROM AUTHOR]

Local Exchange Trading Schemes (LETS) are widely promoted as a new tool for local economic development, but until recently the focus has been on their alleged ‘potential’ rather than the realities of their operation. This paper assesses the practical economic role of LETS by examining the amount of trading conducted, and demonstrates that both the volume of trading and the value of the trades are very low. Drawing on an intensive case study of the first UK LETS created explicitly as part of a local authority's anti–poverty strategy, explanations for the low levels of participation are suggested, and significant structural constraints on the development of LETS are identified. [ABSTRACT FROM AUTHOR]

The promotion of tourism has been identified as a key strategy that can lead to economic upliftment, community development and poverty relief in the developing world. In the last few years, tourism has also emerged as a significant development option in post–apartheid South Africa. In the context of some current debates on tourism in poor countries, the paper examines how economic, social and environmental resources are being utilized to promote tourism as a local economic development strategy in South Africa, and more specifically it focuses on current local government endeavours in this regard and two communities that have suffered the loss of their economic resource base. Tourism–based development initiatives, one in KwaZulu–Natal and one in the Western Cape, are evaluated in the context of generating economic growth, alleviating poverty and addressing the apartheid legacy of discrimination and inequality. The significance of the dynamics of development processes involved in these initiatives has much wider relevance for local economic development, both within South Africa and elsewhere. [ABSTRACT FROM AUTHOR]

This paper seeks to demonstrate the need to bridge the gap between the economic and culture-based approaches to two issues which are fundamental to the debate over the relationship between legal reform and economic development: (a) the relative importance which economic actors around the world place on the legal system and (b) the core components of an effective legal system, as defined by those economic actors. It first outlines the major tenets of current economic legal reform policy, focusing on its underlying assumption that the perceptions and expectations of economic actors around the world do not vary significantly. Data from Geert Hofstede's study of variance in cultural values are then analysed in order to demonstrate how cultural values might affect private sector perceptions and expectations of legal systems as supporters of material progress. It concludes that there is a clear need for a more interdisciplinary approach to the debate over the relationship between legal reform and economic development, and the potential variance in private sector perceptions and expectations of legal systems in particular. Such an approach might be initiated through a systematic integration of existing data and theory from each discipline, reinforced by a new multi-country survey. [ABSTRACT FROM AUTHOR]

Recent research on local and regional economic development has focused upon transformations in local governance and institutional capacity. It has been argued that local authorities have ceded power to other actors and institutions involved in economic development and regeneration, and that the success of local and regional economic development is closely related to the strength of ‘institutional capacity’ within an area. In this paper, we examine these claims with reference to the operation of EU Structural Funds in the Humber Sub-region of the UK. Previous research on local governance and institutional capacity has had a limited empirical focus, drawing conclusions from studies of either economically ‘successful’ regions or regions undergoing regulatory and institutional transformation and precluding analysis of the nature and conditions of local governance and institutional capacity in less developed regions. Our case study evidence not only suggests that arguments about the declining influence of the local state are overdrawn, but also indicates a need for more nuanced accounts of the role of institutional capacity in regional development. [ABSTRACT FROM AUTHOR]

Abstract: The role of creativity in local economic development has been widely discussed. The evidence on this linkage is, however, mixed. This work tries to highlight the nexus by taking into consideration a new aspect, that is, the multidimensional nature of creativity and the potential synergic and complementary effects of creative talents of different nature. The merging of talents is, indeed, a source of original, complex and synergic ideas which are at the basis of the positive relation between creativity and local development. The work addresses this issue conceptually and proves the expectations through an empirical application on Italian provinces (NUTS 3). [ABSTRACT FROM AUTHOR]

Abstract: This study presents novel evidence regarding the role of regional internet infrastructure in reducing regional per capita income disparities. We base our study on the assumptions that (1) the diffusion of information homogenizes regional economies through reducing the dissimilarities in institutions and culture, and (2) the telecommunication capacity, represented by the internet infrastructure of a region, facilitates this flow of information. Using the data from the 26 statistical NUTS‐2 regions of Turkey for the period 1999–2011, we find evidence that internet infrastructure increases the speed of regional convergence. [ABSTRACT FROM AUTHOR]

This study revisits the growth effects associated with subnational fiscal policy. This, to my knowledge, is the first attempt to address the potential endogeneity of fiscal policy control variables. More specifically, the analysis used in this study implements a general method of moments spatial dynamic panel data model estimation procedure to arrive at a more refined set of estimates for the growth effects attributed to state and local fiscal policy. In deriving the estimable equation, this study extends a factor market approach for modelling regional output into a strategic interaction framework. [ABSTRACT FROM AUTHOR]

The reforms instituted by the Broadcasting Act 1990 led to a period of turbulence and upheaval within broadcasting with results that were at best unintended and, at worst, seriously undermined the ideal of public service broadcasting. A Hayekian economic perspective would suggest that the reforms failed because they did not go far enough in the direction of full `marketization'. The paper develops an alternative perspective, based on an adaptation of systems theory within the context of law and economics. This approach offers a broader methodological foundation for the understanding of `economic law' and a different normative perspective on the broadcasting reforms. It is suggested that the difficulty with these reforms was not their failure to go further in the direction of the market, but rather their lack of clarity in articulating a clear alternative to the market as the basis for the organization of television production. [ABSTRACT FROM AUTHOR]

This article addresses central issues related to population policy and economic development. Poverty and prosperity are normally marked by boundaries. These boundaries are also the borders of countries. The familiar exchange-rate comparisons of per capita incomes often overstate international differences in standards of living, but even the best available purchasing-power-parity statistics give the richest countries per capita incomes 10 and 20 times as great as the poorest countries. The statistics also suggest that migrants from poor to rich countries normally obtain great increases in wage rates, and the persistence of the migration confirms that these increases are not statistical illusions. It was shown in this paper that the coincidences of the demarcations of poverty and prosperity with national borders, and the experiences of migrants crossing these borders, offer insights for both economists and demographers, and indeed for anyone who is anxious to alleviate poverty and hasten the progress of the less developed countries. A fresh perspective on the population problem can be achieved and even begin to uncover the key to economic development, by asking how well migration and the great differences in per capita incomes across countries are explained by diminishing returns.

A discussion of the differences between local understandings of property and Western influenced government land policies led to an exchange over cultural differences between the "East" and the "West." Some economists emphasized differences, contrasting Western notions of private property with Eastern concern for the uses of land and Western stress on individual rights with Eastern concern for social duty and obligation. Others are gued against simple East-West contrasts, suggesting that Westerners recognize both rights and obligations but invoke them in different contexts. Given the bleak picture of evicted farmers and devastated forests that emerged from the papers and discussions, economist Joel Handler asked if anyone knew of successful development projects. His question set off a lively discussion, reflected in the excerpts below. Economists asked, "development for whom?" which led into suggestions on how to spread the costs of development more evenly to avoid enriching the already rich and further impoverishing the already poor.

This paper develops a historically contingent understanding of patterns of uneven economic development in the U.S. South. We conceptualize spatial variation in economic development and its consequences for inequality to be embedded in both local and international dynamics. The character of local economic development, it is argued, reflects the organizational base and heterogeneity of local elites, the divisions and relative power of nonelites, and the embeddedness of the local political economy in national and world systems of politics and production. These ideas are developed and made historically and spatially specific through an analysis of uneven development in one Southern state, North Carolina. Our findings suggest that contemporary patterns of uneven development and the resulting income deprivations and inequality reflect conditional interactions between elite economic projects and racial divisions within the working class. We find that outside investment seems to reproduce rather than disrupt local patterns of inequality and poverty. [ABSTRACT FROM AUTHOR]

Disappointment over the contributions of Third World state apparatuses to industrial transformation and the increasing intellectual dominance of "neoutiliarian" paradigms in the social science has made if fashionable to castigate the Third World state as "predatory "and "rent seeking." This paper argues for a more differentiated view, one that connects differences in performance to differences in state structure. The "incoherent absolutist dominationt' of the "klepto-patrimonial" Zairian state are contrasted to the "embedded autonomy" of the East Asian developmental state, Then the internal structure and external ties of an intermediate state - Brazil - are analyzed in relation to both polar types. The comparative evidence suggests that the efficacy of the developmental state depends on a meritocratic bureaucracy with a strong sense of corporate identity and a dense set of Institutionalized links to private elites. [ABSTRACT FROM AUTHOR]

Development theory dealing with the highly industrialized countries of East Asia and Latin America has foundered in terms of its ability to generalize. The theories and concepts often are biased because they are derived from a selective and uneven reading of evidence from the two regions. This paper outlines the perceptions and misconceptions of a variety of theoretical perspectives on development, and then presents cross-regional evidence from East Asia and Latin America that suggests the need for a reformulation and synthesis of some of these earlier approaches. This theoretical synthesis focuses on three related themes: (I) the declining significance of industrialization; (2) the position of core and peripheral capital in commodity chains and export/marketing networks, which are becoming key units of analysis in the contemporary global manufacturing system; and (3) a new framework for differentiating the roles of the newly industrializing countries in the world economy. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of marginal tax rates on the level of economic activity. Data from sixty-three countries for the period 1970-84 provide support for Koester and Kormendi's method of estimating marginal tax rates for individual countries. However, their conclusion that increases in marginal tax rates have negative effects on the level of economic activity is not robust when we extend the time period from 1970-79 to 1970-84. Further, even for Koester and Kormendi's own data set, the negative relation does not hold when the sample is disaggregated into industrial countries and low-income countries. [ABSTRACT FROM AUTHOR]

This paper develops a model of intergenerational mobility and intragenerational inequality that allows us to explore the relationship between economic growth and social mobility. The model is used to analyse the neo-liberal theory of stratification and to assess the consequences of some of the criticisms that have been made of it. In particular, the intergenerational transmission of wealth and privilege, and the existence of ethnic, gender and other forms of ascriptive disadvantage, reduce economic efficiency, although they do not always diminish the extent of social mobility. Furthermore, excessive intragenerational inequality may inhibit, rather than encourage, economic growth. We show that there is no necessary link between rates of social mobility and levels of economic growth. This, we suggest, provides an explanation of why rates of social mobility show very little cross-national variation and display no very evident trend over time towards greater societal openness. [ABSTRACT FROM AUTHOR]

This article investigates three propositions about economic growth and two about unemployment. It rejects the proposition that technology gaps between nations provide opportunities of backwardness which significantly contribute to the explanation of differential growth rates among industrialized democracies. It supports Olson's proposition that long lasting democracies suffer from an accumulation of distributional coalitions whose rent-seeking activities retard economic growth. It also supports the proposition that expanding public sectors, i.e., the tax and welfare state, slow down economic growth. Results on unemployment arc less definite than those on growth rates. But there is some support for Olson's idea that long lasting democracies also suffer from more unemployment than younger democracies do. The impact of public sector size on unemployment seems extremely sensitive to specification issues. Technically, this paper applies cross-sectional and pooled regression analyses of growth or unemployment on the level of economic development, age of democracy, and some public sector size variables. Data refer to the 1960-1989 period and 19 nations. [ABSTRACT FROM AUTHOR]

This study estimates how highways affected industrial development in China's peripheral regions between 1998 and 2007, a period during which China experienced rapid growth in highway mileage. Highways between major cities pass through some counties but not others. Based on this difference in counties' access to highways, we conduct a difference-in-difference propensity score matching estimation, with the treatment variables being counties' highway connection status and their industrial performance before and after being connected to a highway. We find that highways promote industrial development in counties with higher output and greater investment levels. Moreover, highways have differential impacts across industries and regions. [ABSTRACT FROM AUTHOR]

We investigate the role played by different fields of academic knowledge and various types of higher education institutions in the emergence of innovative start-ups in a region. We show that education and research in the applied and natural sciences have the strongest effect on the emergence of new businesses in innovative industries. Distinguishing between different indicators for these types of knowledge, the strongest effects are found for the number of professors, the number of students and the amount of external funds attracted. [ABSTRACT FROM AUTHOR]

Employing micro-data of Dutch local business units, we show that firm characteristics such as size, economic activity, the traded product portfolio, the focus of trade involvement and the geographic pattern of trade are important determinants of recovery following the trade collapse of 2008-2009, both in terms of speed and depth. Our findings suggest that post-crisis growth is faster for trade in goods further downstream of the value chain and thus closer to the final consumer. Trade recovery at the firm-level does not crucially hinge on locational factors such as the province in which a firm is located or regional revealed comparative advantages in particular product groups. [ABSTRACT FROM AUTHOR]

Regional policy-makers have long sought to attract highly-educated workers with a view to stimulating economic growth and vibrancy. Previous studies over the decades leading up to the new millennium show human capital divergence across cities, where the share of college graduates grew faster in cities that had larger initial shares of college-educated workers. However, labour markets have changed significantly post-2000, likely affecting migration decisions of highly-skilled workers. Additionally, past studies have not controlled for important changes in industry education levels and overall industry composition that may influence city-level college graduate growth. We use detailed 4-digit NAICS industry employment data combined with public micro-data to construct measures of industry skill upgrading and changes in industry composition to control for their effects on human capital growth. We find agglomeration forces, rather than initial graduate share, explains college-graduate share growth post-2000. We also decompose graduates into bachelors and postgraduate degree holders to determine whether different forces are at play on growth of graduates at different education levels. [ABSTRACT FROM AUTHOR]

Supply chain internationalization is promoting a new cascade of agglomeration and dispersion. Headquarter tasks agglomerate in major cities in developed countries, whereas labour-intensive tasks are shed to developing countries where off-shored tasks are geographical concentrated. The entire international supply chain is productivity and welfare-enhancing, raising the efficiency of human resource use. An international supply chain can also be a route for inclusive globalization. Such benefits are offset by potential risk of volatility deriving from idiosyncratic supply shocks triggered by powerful natural disasters and other reasons and from final demand shocks. This case study of East Asia illustrates these points. [ABSTRACT FROM AUTHOR]

Determination of optimal population densities underlies the economic rationality when planning the provision of basic public infrastructure by local governments. Using econometric techniques based on the translog cost function, we investigate the existence of economies of scale, associated to a larger urban size in terms of population and housing, determine the effect of alternative urban patterns - compact or dispersed - on the cost of provision, and calculate optimal population densities as targets for urban planning. We illustrate the practicality of our model using Spanish municipal data, and unveil latent economies of scale and suboptimal urban densities due to excessive dispersion. Based on these findings we propose specific policy guidelines in terms of desirable urban structures. [ABSTRACT FROM AUTHOR]

This empirical study explores financial links between indigenous and non-indigenous economic systems in a remote river catchment in Northern Australia (the Mitchell). It finds evidence of a profound and asymmetric 'disconnect' between these economies: an exogenous increase in indigenous incomes raises the incomes of non-indigenous people, but the reverse is not true. Evidently, those seeking to improve the incomes of indigenous people in Northern Australia cannot simply seek to ( i) increase payments to indigenous people, or ( ii) expand the non-indigenous sector hoping that some benefits will 'trickle down'. Instead, structural change is required. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including volatility of Chinese economic activities, globalization and industrial performance in China, and regional disparities and productivity in China.

Empirical research on the determinants of regional economic development typically neglects the influence of culture. This study fills that gap by attempting to establish a causal linkage between culture and economic development in the Chinese context. Our empirical analyses are based on a comprehensive economic statistics of China's provinces and prefectures during 1978 to 2008. We use Protestantism as a proxy for culture because Protestant ethic has been linked to the spirit of capitalism and commercial culture in Weber's famous work. To isolate the exogenous variation in culture measure, historical Protestant dissemination is employed as instruments. The estimation results suggest that Christian commercial culture has a significantly positive impact on economic performance - per capita GDP after other important influences (i.e., capital, population, human resources, institutional quality, trade, infrastructure, geography, etc.) are controlled for. We also find heterogeneous effects of culture on economic development in different regions of China. [ABSTRACT FROM AUTHOR]

This study evaluates the relationship between the spatial distribution of broadband providers and the presence of knowledge intensive firm clusters in US counties. Results highlight this relationship is heterogeneous and localized. In some places, broadband appears to be an essential link that enables knowledge firms to strategically locate in lower cost counties and in close proximity to major knowledge centres. In other places, the availability of broadband Internet connections are unable the negative externalities associated with locations in more remote areas of the country. From a policy perspective, this suggests that broadband should be viewed as a key component, but not the only component, of comprehensive local economic development plans. [ABSTRACT FROM AUTHOR]

This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. We start by quantifying the research in this field by using bibliometric tools. Thereafter, this study identifies the main research paths within spatial competition modelling. Specifically, the type of strategy (Bertrand vs. Cournot competition), the assumptions that are made in respect to the market (linear vs. circular), production costs, transportation costs, the number of firms and the type of information (complete vs. incomplete) and their effects on the location equilibria are also discussed. [ABSTRACT FROM AUTHOR]

Given the increasing share of the EU budget devoted to Regional Policy, several studies have tried to identify the impact of structural funds on economic growth. However, so far no consensus has been reached. We assess Regional Policy effects through a non-experimental comparison group method, the regression discontinuity design, and a novel regional dataset for the 1994-2006 period. We exploit the allocation rule of EU transfers by comparing regions with a per capita GDP level just below the eligibility threshold (75% of EU average) with those just above. Our findings show a positive impact of EU Regional Policy on economic growth. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including regional transportation, the sector's role in economic development and government investments for the sector.

We determine the properties of the core-periphery model with three regions and compare our results with those of the standard 2-region model. The conditions for the stability of dispersion and concentration are established. As in the 2-region model, dispersion and concentration can be simultaneously stable. We show that the 3-region (2-region) model favours the concentration (dispersion) of economic activity. Furthermore, we provide some results for the n-region model. We show that the stability of concentration of the 2-region model implies that of any model with an even number of regions. Determinamos las propiedades de un modelo núcleo-periferia de tres regiones y comparamos nuestros resultados con los del modelo estándar de dos regiones. Se establecen las condiciones para la estabilidad de la dispersión y la concentración. Al igual que en el modelo de dos regiones, la dispersión y la concentración pueden ser estables simultáneamente. Mostramos que el modelo de tres regiones (dos regiones) favorece la concentración (dispersión) de la actividad económica. Además, aportamos algunos resultados para un modelo n-regional. Mostramos que la estabilidad de la concentración del modelo bi-regional implica eso mismo de cualquier modelo con un número par de regiones. [ABSTRACT FROM AUTHOR]

The article presents a study which examined the relationship between the medium and small enterprise (SME) sector and the economic growth in Brazil. The researchers investigated the significance of the size of the SME sector by the share of the level of human capital and SME employment measured by the mean years of schooling in the enterprises. They also assessed how employment and human capital influence the growth of the sector in the micro-regions of the country.

We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7 per cent. An increase of one percentage point in the net migration rate of a region increases the per capita income growth rate in that region on average by about 0.1 percentage points. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration. [ABSTRACT FROM AUTHOR]

The new economic geography (NEG) has become a mainstay of regional science in the last two decades, as signified by the awarding of Paul Krugman, the Nobel Prize. Yet, most American regional scientists and urban/regional economists do not use NEG in determining regional growth patterns. Instead, they rely on factors such as natural amenity migration, whose roots lie back to the work of Philip Graves in the mid 1970s. Conversely, two of the world's leading economic geographers – Allen Scott and Michael Storper – have strongly argued that job availability not household amenities have determined US regional dynamics. Given the disparity of views over the largest developed economy in the world, we hold a competition to determine which of these leading contenders accurately predict US interregional growth dynamics over the last 40–60 years. The runaway winner of the duel is natural amenity led growth with the crown going to Graves. Implications are drawn for both empirical research and EU economic integration. [ABSTRACT FROM AUTHOR]

In modern economic growth theory, R&D and the subsequent production of new knowledge are the driving forces for long-term regional growth. Empirical evidence, however, does not always support this popular belief in the regional context. Using a simple growth accounting model, this study examines the role of R&D in regional growth. Estimation results from the proposed models show that knowledge commercialization and retention factors, such as entrepreneurship, university research, human capital, social capital, and industry structure, play significant roles in the regional R&D appropriation mechanism. Findings from this study suggest that R&D policy needs to be designed to take into account other regional factors. [ABSTRACT FROM AUTHOR]

In this article a semiparametric spatial Durbin model is employed to analyse the growth behaviour of 155 European regions in the period 1988–2000. This specification combines the semiparametric approach with the usual parametric spatial econometric technique to accommodate both spatial dependence and nonlinearities as suggested by recent neoclassical growth models with spatial technological interdependence. The results provide evidence of nonlinearities in the effect of initial per capita incomes and human capital investments. Moreover, the specification used allows identifying the effect of the interaction between the characteristics (initial conditions and structural variables) of each region and those of its neighbours. Finally, it shows some indication of global spillovers across-country and local spatial spillovers from domestic neighbours. Resumen En este artículo se emplea un modelo semiparamétrico espacial de Durbin para analizar el comportamiento del crecimiento de 155 regiones europeas durante el periodo 1988–2000. Esta especificación combina el enfoque semiparamétrico con técnicas econométricas espaciales paramétricas habituales para reconciliar la dependencia espacial y las no linealidades, tal y como sugieren los modelos de crecimiento neoclásicos recientes con interdependencia tecnológica espacial. Los resultados ofrecen pruebas de no linealidades en el efecto de ingresos per capita iniciales e inversiones en capital humano. Además, la especificación utilizada permite utilizar el efecto de la interacción entre las características (condiciones iniciales y variables estructurales) de cada región y las de sus vecinos. Finalmente, da una idea de spillovers (efectos de derrame) globales entre países y spillovers espaciales locales de regiones vecinas dentro del país. [ABSTRACT FROM AUTHOR]

This study develops an economic growth model with residential distribution. The model synthesises the main ideas in the Solow-Uzawa growth model, the Alonso urban model, and the Muth housing model with perfect competition in all the markets, by proposing an alternative approach to household behaviour. We show that economic growth with the economic geography is governed by a single differential equation and analyse dynamic behaviour of the model. For explanation, we simulate the model over time and space. Resumen. Este estudio desarrolla un modelo de crecimiento económico con distribución residencial. El modelo sintetiza las ideas principales del modelo de crecimiento de Solow-Uzawa, el modelo urbano de Alonso, y el modelo de vivienda de Muth con una competencia perfecta en todos los mercados, por medio de proponer un enfoque alternativo al comportamiento de hogares. Mostramos que el crecimiento económico con la geografía económica está gobernado por una única ecuación diferencial y analizamos el comportamiento dinámico del modelo. A modo de explicación, realizamos una simulación del modelo en el tiempo y en el espacio. [ABSTRACT FROM AUTHOR]

The theory of endogenous growth and the geography and growth synthesis both consider that local growth and spatial concentration of economic activities emanate from localised knowledge spillovers ( Lucas 1988 ; Martin and Ottaviano 1999 ). Since the end of the 1980's, the spatial dimension of knowledge diffusion has been investigated from an empirical point of view, and the existence and role of local spillovers has been generally confirmed (see among others Jaffe 1989 ; Audretsch and Feldman 1996 ). The concern that now arises is to unravel the mechanisms underlying and explaining the geographical knowledge spillovers. The aim of this special issue is to present the latest new findings on such questions and to identify some new lines of research for future work. Before presenting the content of this special issue, we very briefly review the main results of the empirical literature on the geography of innovation. We also explain the context of this special issue by pointing out some of the limitations faced by this literature and, by stressing the complex dynamic and network dimensions of the observed processes of production and diffusion of knowledge. [ABSTRACT FROM AUTHOR]

This research note examines the determinants of economic growth at the sub-national level in South Africa, and investigates cross-regional medium term (1998–2002) growth rate differentials between 354 magisterial districts. A dynamic panel data regression model is used that includes measures of geography (distance and natural resources) as well as recent estimates of physical and human capital. We find that the significant determinants of local economic growth are distance from internal markets, human capital, export propensity, and the capital stock. Distance from international harbours, as a measure of transport costs, and urban agglomeration (or density) affects growth indirectly through its significant effect on the ability of a region to export. Overall, these results indicate that geography is important, independent of its effects on institutions, for economic growth. Bearing in mind a medium-term focus, no evidence of absolute convergence could be found over a five-year period, but the evidence tentatively suggests beta convergence. [ABSTRACT FROM AUTHOR]

This research note reconsiders China’s recent growth experience from an institutional convergence perspective. Based on the neoclassical production function of growth, a stochastic growth model incorporating an institutional variable is specified and estimated using cross-province socioeconomic data for 1984–2001. While three explanatory variables all contribute to growth, the most significant and important effect comes from the variable of institutional progress. This suggests that China’s good economic performance since 1978 can be attributed to the convergence of China’s economic institutions with the economic institutions of modern capitalist economies, particularly the East Asian capitalist economies. If this suggestion is accepted, then China’s newly emerging regionalism can be better understood as resulting from an uneven institutional convergence process in a spatial context. These results are different from those of conventional Chinese regional development studies. They are important because they represent the first detailed evidence on the role of institutional effects in a Chinese regional economic study. [ABSTRACT FROM AUTHOR]

The article aims to explain regional economic development and economic convergence under the theme of spatial econometrics. The major idea behind the economic convergence is decreasing returns to capital accumulation. The economic convergence can be achieved by variety of theoretical and statistical models. There are so many advanced studies came out. They will facilitate convergence model specification and statistical testing for better efficiency.

The authors present the case of five Canadian peripheral regions, which they argue are destined to decline. The explanation of the reasons why future decline (in absolute population and employment numbers) is inevitable constitutes the article’s central focus. The authors suggest that regional decline will become an increasingly common occurrence in nations at the end of the demographic transition whose economic geographies display centre-periphery relationships. Such broad structural trends cannot be easily altered by public policy. The authors reflect on the implications of regional decline for the formulation of local economic development strategies. Local economic development strategies should not, they argue, be advanced as a means of arresting population and employment decline. To suggest that the regions studied in this article will decline because of a lack of social capital or insufficient number of local entrepreneurs, is not only misleading but may also be counterproductive. [ABSTRACT FROM AUTHOR]

This article presents an overview of the recent development in the new economic geography (NEG), and discusses possible directions of its future development. Since several surveys on this topic already exist, we focus on the selected features of NEG which are important yet have attracted insufficient attention, and also on the recent refinements and extensions of the framework. [ABSTRACT FROM AUTHOR]