The role of openness in economic growth of regions. The perspectives of economic growth and new economic geography theory and empirics

Tomasz Brodzicki

No 1801, Working Papers from Instytut Rozwoju, Institute for Development

Abstract: The bond between economic growth and openness of regions is a complex and to some extent ambiguous both from theoretical and empirical perspectives. The relationship becomes even more blurred if we take into account spatial nonlinearity into account. In the present paper we critically review the theoretical and empirical literature in the two strands – economic growth and new economic geography. It seems that thee analysis of the impact of openness on economic growth of regions should take into account the various potential channels, try to prove the direction of causality and acknowledge the presence of spatial interlinkages between regions. This is in particular important for mid-size and large-size economies with a significant number of regions and large regional heterogeneity frequently due to more deep-rooted factors. It implies the use of spatial econometric techniques.

Keywords: economic growth; economic development; openness; trade; FDI; regional economics (search for similar items in EconPapers)
JEL-codes: F21 F43 O47 R11 R12 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2018-02
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http://www.instytut-rozwoju.org/WP/IR_WP2017_02.pdf First version, 2018

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Persistent link: https://EconPapers.repec.org/RePEc:iro:wpaper:1801

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