CLC number: F061.2
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Received: 2006-04-03
Revision Accepted: 2006-06-28
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QIAN Edward Y., YAO Yao-jun, CHEN Gary. A model of regional economic development with increasing returns[J]. Journal of Zhejiang University Science A, 2007, 8(1): 164-170.
@article{title="A model of regional economic development with increasing returns",
author="QIAN Edward Y., YAO Yao-jun, CHEN Gary",
journal="Journal of Zhejiang University Science A",
volume="8",
number="1",
pages="164-170",
year="2007",
publisher="Zhejiang University Press & Springer",
doi="10.1631/jzus.2007.A0164"
}
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%I Zhejiang University Press & Springer
%DOI 10.1631/jzus.2007.A0164
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T1 - A model of regional economic development with increasing returns
A1 - QIAN Edward Y.
A1 - YAO Yao-jun
A1 - CHEN Gary
J0 - Journal of Zhejiang University Science A
VL - 8
IS - 1
SP - 164
EP - 170
%@ 1673-565X
Y1 - 2007
PB - Zhejiang University Press & Springer
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DOI - 10.1631/jzus.2007.A0164
Abstract: This paper develops mathematically and empirically tractable regional and interregional model of economic development with increasing returns to scale (IRS) under the neoclassical assumptions. A one-sector, two-region model in which one region exhibits IRS is presented and the whole nation presents constant returns to scale. The development of the local IRS economy is shown to be constrained to a “moving equilibrium” path. The preliminary empirical results are sufficiently supportive of the argument to encourage further research along the lines of the model. In particular, the neoclassical model does not predict negative coefficients on the real rental value of capital in regressions explaining population or employment relative to that in the nation.
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