View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by DSpace at VU Ann Reg Sci (1998) 32:7–37 © Springer-Verlag 1998 Spatial perspectives on new theories of economic growth* Peter Nijkamp1, Jacques Poot 2 1 Department of Spatial Economics, Free University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands (Tel.: +31-20-44460 94; Fax: +31-20-44460 04; e-mail:
[email protected]) 2 School of Economics and Finance, Victoria University of Wellington, P.O. Box 600, Wellington, New Zealand (Tel.: +64-4-4721000; Fax: +64-4-4955014; e-mail:
[email protected]) Abstract. A new wave of interest in long-run economic growth emerged since the late 1980s. This paper uses a simple model to illustrate how tech- nological change can be endogenised in macroeconomic theories of growth and then surveys how – through factor mobility, the diffusion of innova- tions and trade – spatial interdependence in a system of regions can influ- ence technological change and growth. Endogenous technological change generates in our illustrative model long-run steady-state growth in a closed economy. However, it turns out that the dynamic impact of spatial inter- dependence depends on the specification of the model. Spatial conver- gence, a steady state with persisting spatial differences in growth rates and unstable growth are all theoretically possible. Issues relating to the role of aggregate demand and policy also receive attention. There is much scope for further theoretical and empirical work on endogenous growth in a spa- tial-economic context, while a better integration of micro and macro level approaches is also desirable.