Regional Competition and Complementarity: Comparative Advantages/Disadvantages and Increasing/Diminishing Returns in Discrete Relative Spatial Dynamics

Michael Sonis and Geoffrey Hewings
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Michael Sonis: University of Illinois at Urbana Champaign

Chapter 7 in Regional Competition, 2000, pp 139-158 from Springer

Abstract: Abstract This paper focuses on the interplay between regional composite comparative advantages and disadvantages generating increasing or decreasing returns that, in turn, generate regional competition or complementarity. This paper has two main parts. The methodological part presents the results of modeling of comparative advantages/disadvantages and increasing/decreasing returns in regional competition or complementarity through the use of log-linear discrete relative one population/multiple location dynamics and explores the conditions of stability, periodicity, quasi-periodicity and ways to chaos in these dynamics. The numerical realization of the algorithm of linear bifurcation analysis for one population/three locations log-linear relative dynamics is considered in detail. The empirical part stresses the role of regional interaction in multiregional growth by estimating the parameters for one population (Gross National Product)/multiple location (aggregated region divisions) log-linear model using maximum likelihood methods; as a result, the patterns of competition and complementarity in the US regional system are uncovered.

Keywords: Stability Domain; Relative Dynamic; Gross National Product; Regional Competition; Intraindustry Trade (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-662-04234-2_7

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DOI: 10.1007/978-3-662-04234-2_7

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