An Endogenous Perspective on Regional Development and Growth

Abstract

Over the past two decades or so the emphasis in regional economic development theory has shifted from a focus primarily on exogenous factors to an increasing focus on endogenous factors. Traditional regional economic development approaches were erected on neo-classical economic growth theory, based largely on the Solow (1956, 2000) growth model. The new approach – while recognizing that development is framed by exogenous factors – attributes a much more significant role for endogenous forces. In this context, a suite of models and arguments that broadly convey the new growth theory have been directed towards endogenous factors and processes (see, e.g., Johansson et al. 2001).