Premium
Kaldor's 1970 Regional Growth Model Revisited
Author(s) -
Thirlwall A. P.
Publication year - 2014
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/sjpe.12048
Subject(s) - economics , relevance (law) , per capita , neoclassical economics , per capita income , growth model , contrast (vision) , keynesian economics , growth theory , politics , macroeconomics , political science , sociology , law , population , demography , artificial intelligence , computer science
Kaldor's 1970 paper ‘The Case for Regional Policies’ was republished in the 60th anniversary volume of the Scottish Journal of Political Economy . This article reflects on the model after more than 40 years, and argues that although it has been criticized for its deterministic nature, it has lost none of its relevance. It predates the ideas of so‐called ‘new’ growth theory, and the new economic geography of Krugman, and provides at least a partial explanation of why growth rates and levels of per capita income between regions and between countries can continue to persist and even widen in contrast to the predictions of orthodox equilibrium theory.