This book analyses the conception of economic development in modern
regions, which has gone through a fundamental change since the
early 1980s. Regions are today increasingly looked upon as
independent market places that are connected via interregional and
international trade and not as administrative units embodied in a
national state. Two complementary theoretical frameworks explain
the specialization of economic activity at the regional level. The
traditional approach assumes that the comparative advantages of
regions depend upon differences in the supply of lasting resources.
In contrast the new complementary framework called the New Economic
Geography, assumes that the dynamic interaction between
geographical market potentials and rational firms in its own way
creates the comparative advantage of regions. The contributors to
this book examine the policy implications of the complementarity of
the competing views in a variety of geographic and functional
contexts. The first set of papers examines the effect of regional
policy on firm locational decision-making. This leads to another
set evaluating a variety of regional policy efforts. New and
different methodological approaches are examined in another set of
papers. The final part of the book focuses on new concepts.
Economists, geographers and readers interested in regionalization,
trade and development will find this book informative.
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