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Lessons for regional policy from the new economic geography and the endogenous growth theory

Helmut Karl and Ximena Fernanda Matus Velasco

A chapter in Employment and regional development policy: Market efficiency versus policy intervention, 2004, pp 71-89 from ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft

Abstract: The social and economic cohesion across the European territory represents one of the main tasks of the European Community. This goal goes along with the objective to reach a balance and sustainable growth and economic convergence at the regional and country level, as well as to avoid income and employment disparities. However, due to different reasons (e.g. factor endowment, agglomeration economies, infrastructure facilities or innovation networks) this goal may be difficult to obtain. Therefore, the aim of this paper is to show the forces which may impede the cohesion of the European territory. This is done through the tools offered by the new economic geography and the endogenous growth theories. Looking at these perspectives a framework with some proposals to improve regional policy at European, national and local level can be provided.

Date: 2004
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