Agglomeration and regional growth policy: externalities versus comparative advantages

Auteur(s) et Affiliation(s)

CEF.UP and NIFIP, Faculdade de Economia, Univ., Porto, Portugal

Description :
This paper explores the existence of different types of static and dynamic externalities and shows the relationship between externalities, interregional trade, and cluster policy. First, it contributes to a better characterization of dynamic externalities by extending the “advantages of backwardness” approach, formerly developed to explain the catching-up of national economies, to the regional conecontext. Second, it presents a new model that relates static and dynamic externalities to the clustering mode of production in the regional context. Third, the paper contributes to give a more accurate theoretic basis to the regional cluster policy and to help policy-makers in choosing the right policy for increasing the well-being of depressed regions. The major conclusion is that policy must pursue a combination of the comparative advantage principle with one type of dynamic externalities un-covered in this paper: the “related variety benefits” of agglomeration.

Type de document :
Article de périodique

Source :
The Annals of regional science, issn : 0570-1864, 2014, vol. 53, n°. 1, p. 1-27, nombre de pages : 27, Références bibliographiques : 128 ref.

Date :

Editeur :
Pays édition : Allemagne, Berlin, Springer

Langue :
Droits :
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