A regional model of endogenous growth without scale assumptions. Issue 1 (2nd January 2018)

• Record Type: Journal Article
• Authors: Bond-Smith, Steven; McCann, Philip; Oxley, Les
• Is Part Of: Spatial economic analysis. Volume 13:Issue 1(2018)
• Page Start: 5
• Page End: 35
• Publication Date: 2018-01-02
• Subjects: growth -- scale effects -- innovation -- economic geography; F15 -- O41 -- R12; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2018.1392038
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: In this paper we model growth using a scale-neutral approach to innovation allowing differences between regions to emerge due to regional mechanisms. In this model, agglomeration is growth enhancing as the scale effect for innovation arises from greater access to knowledge rather than any assumed scale effects in growth-modelling techniques. Furthermore, entrepreneurs are assumed to choose the location of firms endogenously so as to minimize the costs of innovation, transport and living. The effects of such mechanisms are such that any policies that increase knowledge spillovers between locations will enhance growth and equality, but may be destabilizing for agglomeration.