Regional Growth and Regional Policy Within the Framework of by Reimut Jochimsen (auth.), Prof. Dr. Karin Peschel (eds.)

By Reimut Jochimsen (auth.), Prof. Dr. Karin Peschel (eds.)

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Extra resources for Regional Growth and Regional Policy Within the Framework of European Integration: Proceedings of a Conference on the Occasion of 25 Years Institute for Regional Research at the University of Kiel 1995

Example text

More manufacturing in East allows Eastern firms to buy the same product diversity for lower prices due to lower transport costs. In regional science language they gain from a higher supply potential. Manufacturing firms follow manufacturing fmns. This is the centripetal force. The countervailing centrifugal force is exerted by the immobile factor. Workers are required for production, and they are a market for manufactures. 28 When a model of this kind is solved for a system with many regions or even with continuous space, complex economic landscapes arise.

Even in a neo-classical perspective 'equilibrium differentials' are the expected outcome (Evans and Richardson, 1981, Gordon, 1985). At an intraregional level, however, positions are broadly reversed. Europeans, analysing compact city-regions which, socio-economically and ethnically are, by US standards, comparatively homogeneous, argue for equalisation on the margin (Cheshire, 1979, Cheshire, 1993). Americans, however, express continuing concern for implicit disequilibrium at the intraregionallevel (Wilson, 1987, Hughes, 1993).

Which question aims the new theory to answer? What is its methodology, and what are the answers? Imagine a homogeneous space. Let the same technology be available all over space, and let transport be costly. How then can we explain the emergence of cities, of densely and sparsely populated areas, of spatial division of labour, and of 26 trade by pure economic forces? Obviously, the theory must describe the interaction of those forces, which the late Edwin von BOventer (1979) has called the "raumdifferenzierende Faktoren": Economies of agglomeration exerting a centripetal force, the necessity to use land in production and consumption, exerting a centrifugal force, and transport cost making it advantageous for different activities to be close to each other.

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