Quotation Fischer, Manfred M.. 2014. City-regions in a global world. Workshop on Governance of Complex Spatial Systems, Urban Cyberplaces and Digital Intelligence, Rabat, Marokko, 20.11.-21.11.2014.




Why have some regions grown rich while others have remained poor? This is a recurrent question in the literature on economic growth. Economic growth theorists have emphasized the role of externalities in the accumulation of factors of production in explaining growth (Romer 1986, Grossman and Helpman 1991), but typically assume that knowledge spill overs to other agents within the region, but not to other regions, and hence ignore the impact of location and neighbourhood in explaining growth. This paper presents a theoretical growth model that explicitly takes into account technological interdependence among regional economies in a Mankiw-Romer-Weil world (Fischer 2014). Technological interdependence is assumed to operate through physical and human externalities. The magnitude of the physical and human capital externalities at steady state is estimated using the reduced form of this theoretical model and its associated empirical model along with data for a system of 198 regions across 22 European countries. The results reveal that technological interdependence among regions works through physical rather than human capital externalities across regional borders.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title City-regions in a global world
Event Workshop on Governance of Complex Spatial Systems, Urban Cyberplaces and Digital Intelligence
Year 2014
Date 20.11.-21.11.2014
Country Morocco
Location Rabat


Fischer, Manfred M. (Details)
Research Institute for Supply Chain Management FI (Details)
Institute for Economic Geography and GIScience IN (Details)
Google Scholar: Search