Abstract

This paper deals with the dynamics of multiregional systems in which economic growth is strictly dependent on the capital accumulation process and multisectoral multiregional interactions evolve within a general equilibrium context. The input-output approach allows an analysis based on the structural properties of the matrices representing the linkages among the different parts of the multiregional economy. The singularity of the regional matrices of capital input coefficients is realistically imposed, and the forward-in-time projection of the model is made possible by a suitable partition of the system. Moreover, the existence and relative stability of a balanced growth path are discussed under the assumption that each sector in the economy requires, directly or indirectly, either some current flow or some capital input from all the other sectors operating in the same and in the other regions. The model is applied to the Italian economy at 1985 within a biregional framework.

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