Abstract

Abstract The paper evaluates the New Economic Geography in the tradition of Paul Krugman and the new (regional) growth literature of Paul Romer and others of the last decade and discusses its importance for knowledge-based regional development as well as consequences for Economic Geography. Model specifications are presented and the implication for regional, i.e. subnational, growth are discussed. Although several of the new insights developed in these theories are not that new for economic geographers with basic skills in non-neoclassical economics, it is argued that regional development as a whole can profit from the current geographical turn in economics, of which the theories reviewed here are an indicator.

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