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2005•Journal Region: Economics and SociologyRequires access

The economic growth in a system of regions: a theoretical model

Roman Melnikov

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Abstract

The paper formulates a theoretical model of economic growth in a spatial system of interrelated regions that captures the effect of interregional operations on national growth and validates a strong regional policy from the central government. The model implications and possible consequences of central investment policy on regional development are studied with simulation experiments. The calculations have shown that goals of promoting national growth and goals of weakening regional disparities are not incompatible.

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What this paper is about

The paper formulates a theoretical model of economic growth in a spatial system of interrelated regions that captures the effect of interregional operations on national growth and validates a strong regional policy from the central government. The model implications and possible consequences of central investment policy on regional development are studied with simulation experiments. The calculations have shown that goals of promoting national growth and goals of weakening regional disparities are not incompatible.

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Available abstract

The paper formulates a theoretical model of economic growth in a spatial system of interrelated regions that captures the effect of interregional operations on national growth and validates a strong regional policy from the central government. The model implications and possible consequences of central investment policy on regional development are studied with simulation experiments. The calculations have shown that goals of promoting national growth and goals of weakening regional disparities are not incompatible.

Key concepts: Growth model, Investment (military), Economics, Government (linguistics), Economic system, Regional policy, Macroeconomics, Economic geography

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