This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by McCombie, J.S.L. Search for Related Content Social Bookmarking                   What's this?

A Synoptic View of Regional Growth and Unemployment: I - The Neoclassical Theory

Department of Economics, University of Melbourne, Victoria, Australia

This paper is the first part of a consideration of the implications of the current controversies in macroeconomics for regional growth theory. It is concerned with the neoclassical explanation of disparities in regional growth and unemployment rates. The one-sector and two-sector neoclassical models are surveyed and it is shown how this approach explains differences in productivity growth in terms of the progressive eradication of an initial misallocation of resources (both interregionally and intraregionally). Involuntary unemployment is ascribed to the classical view that real wages are too high. The effect of the spatial diffusion of innovations on productivity growth is also examined.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				J. Koo and S. Lall New Economic Geography: Real or Hype? International Regional Science Review, January 1, 2007; 30(1): 3 - 19. [Abstract] [PDF]

				E. Feser and S. Sweeney Out-Migration, Depopulation, And The Geography Of U.S. Economic Distress International Regional Science Review, January 1, 2003; 26(1): 38 - 67. [Abstract] [PDF]