Storper, Michael (2009) Regional context and global trade. Economic geography, 85 (1). pp. 1-21. ISSN 0013-0095
How should we think of the role of regions in relation to the global economy? Theory has surprising gaps when it comes to building a unified vision of these two scales of development. Two contributions to such a vision are proposed in this article. First, the relationship between geographic concentration and the regional economic specialization it underpins and globalization should be theorized as a dynamic process. Standard location and trade theory is not adequate for this task; instead, the dynamic relationship can be captured through growth theory. But capturing this dynamic relationship requires correcting growth theory to separate its local and its global components, which are, respectively, Marshall- Arrow and Romer externalities. Second, the missing element in all theories of geographic concentration and locally specialized development is an element labeled “context” here. A theory of context, in turn, raises important new questions about the dynamic welfare and developmental effects of contemporary processes of fragmenting and relocating production at a global scale.
|Additional Information:||© 2009 Clark University|
|Uncontrolled Keywords:||innovation diffusion, growth theory, MAR externalities, global trade, context, behavioral economics|
|Library of Congress subject classification:||H Social Sciences > HF Commerce|
|Sets:||Departments > Geography and Environment|
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