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Agglomeration and regional growth policy: externalities versus comparative advantages
时间:2017-04-16

【摘要】This paper explores the existence of different types of static and dynamic externalities and shows the relationship between externalities; interregional trade; and cluster policy. By guiding policy in choosing the most appropriate strategy for facing some frequent dilemmas; this paper has clear implications in regional development policy and adds to the existent literature in three ways. 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 context. Second; the paper 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 uncovered in this paper: the 'related variety benefits' of agglomeration.

【文献来源】Pessoa A.Annals of regional Science.2014(4)