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REGIONALES WACHSTUM UND INTERREGIONALE KAPITAL‐BEWEGUNGEN *
Author(s) -
Holzheu Franz
Publication year - 1969
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.1467-6435.1969.tb00912.x
Subject(s) - economics , capital (architecture) , capital good , capital flows , growth model , competition (biology) , supply and demand , macroeconomics , economic geography , economy , market economy , goods and services , geography , liberalization , archaeology , biology , ecology
SUMMARY This paper wants to show that endogenous treatment of interregional capital movements should be an essential element in the analysis of regional development. Capital movements to or from a region are assumed to depend on the real prices of interregionally traded goods and on the supply of labour, technical progress, the development of the demand for goods, and the accumulation of wealth in that region. In this view interregional capital movements are a permanent phenomenon of regional growth and therefore should not be considered in the analysis of regional growth by treating them as exogenous disturbances. To present his view the author is using a neoclassical model based on neoclassical models of interregional (international) trade. By introducing assumptions on competition, factor mobility, etc., which are different from those typically used in neoclassical analysis, he tries to modify the results and to bring them nearer to reality.