Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    Incorporating Space in the Theory of Endogenous Growth: Contributions from the New Economic Geography

    Access Status
    Fulltext not available
    Authors
    Bond-Smith, Steven
    McCann, P.
    Date
    2014
    Type
    Book Chapter
    
    Metadata
    Show full item record
    Citation
    Bond-Smith, S. and McCann, P. 2014. Incorporating Space in the Theory of Endogenous Growth: Contributions from the New Economic Geography, in Fischer, M. and Nijkamp, P. (ed), Handbook of Regional Science, pp. 213-236. Berlin: Springer-Verlag.
    Source Title
    Handbook of Regional Science
    DOI
    10.1007/978-3-642-23430-9_14
    ISBN
    978-3-642-23429-3
    School
    Bankwest-Curtin Economics Centre
    URI
    http://hdl.handle.net/20.500.11937/18034
    Collection
    • Curtin Research Publications
    Abstract

    We describe how endogenous growth theory has now incorporated spatial factors. We also derive some of the policy implications of this new theory for growth and economic integration. We start by reviewing the product variety model of endogenous growth and discuss similarities with modeling techniques in the new economic geography. Both use Dixit-Stiglitz competition. Increasing returns provide an incentive for innovation in endogenous growth theory, and in combination with transport costs, increasing returns provide an incentive for firm location decisions in the new economic geography. Since innovation is the engine of growth in endogenous growth models and knowledge spillovers are a key input to innovation production, we also explore how innovation and knowledge have distinctly spatial characteristics. These modeling similarities and the spatial nature of knowledge spillovers have led to space being incorporated into the theory of endogenous growth. We guide the reader through how space is modeled in endogenous growth theory via the new economic geography. Growth by innovation is a force for agglomeration. When space is included, growth is enhanced by agglomeration because of the presence of localized technology spillovers. We consider the many other spatial factors included in models of space and growth. We explore the spatial effects on economic growth demonstrated by these theoretical models. Lastly, we consider policy implications for integration beyond lowering trade costs and discuss how lowering the cost of trading knowledge is a stabilizing force and is growth enhancing.

    Related items

    Showing items related by title, author, creator and subject.

    • Incorporating space in the theory of endogenous growth: Contributions from the new economic geography
      Bond-Smith, Steven; McCann, P. (2014)
      © Springer-Verlag Berlin Heidelberg 2014. We describe how endogenous growth theory has now incorporated spatial factors. We also derive some of the policy implications of this new theory for growth and economic integration. ...
    • A multi-sector model of relatedness, growth and industry clustering
      Bond-Smith, Steven ; McCann, Philip (2019)
      This article builds an understanding of regional innovation specialisation by developing a multi-sector model with endogenous growth through quality improving innovations and spillovers from related technologies. The model ...
    • The role of economic development and urban planning in the development of knowledge-based regions in secondary economic centres : a comparative study of Australia and Japan
      Martinus, Kirsten R. (2011)
      Knowledge development and innovation have frequently been linked to rapid sustainable economic growth. Recent unprecedented globalisation and technological advancements have made understanding this relationship more ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.