THE DEBATE OF THE MODERN THEORIES OF REGIONAL ECONOMIC GROWTH

Abstract

How do we explain the differences in economic growth in different parts of the nation and the world during the last sixty years? The objective of the study is to survey the traditional theories and models of regional economic growth. The growth literature to date has proposed several answers, included in the neoclassical models, exogenous technological progress and recent endogenous models that emphasize capital accumulation through externalities, learning by doing, or in conjunction with human capital. The paper looks at the recent theoretical and empirical debate related to the theory of regional economic growth.

Keywords

• solow model
• keynesian model
• neoclassical growth model
• new growth theory
• economic geography
• economies of agglomeration
• real business cycle models