By Miguel-Angel Galindo; Joaquín Guzman
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Grossman and Helpman argued that spillovers generate a cumulative process of knowledge creation, and since this process develops at a geographical level, it should explain the existence of variations in the rate of economic growth between regions. 3 Krugman and the New Economic Geography Krugman (1991a,b) and the New Economic Geography offered a fundamental contribution to the explanation of the spatial concentration of economic activities. By focusing on two crucial aspects of spatial economics – the existence of agglomeration economies and the factors which determine the location of firms – the phenomenon of geographical concentration was interpreted in terms of the interaction between centrifugal and centripetal forces, by means of a model centred on increasing returns, transport costs and migratory movements.
On trade in particolar see Genovesi (1766, pp. ); Genovesi (1765,Tomo VII, Chap. XIII, p. 322). Cf. Genovesi (1766, p. 83). As Fusco very rightly points out, (1988, pp. 615–616), Genovesi’s scheme goes back to the ‘new mercantilism’, since the vision is mainly projected on the Neapolitan situation. 18 From these considerations emerged the pivotal argument underlying the theory of comparative costs, later revised by Fanno as we analyse below. Genovesi viewed the labour force, which originates from the population, as the powerhouse of the economy.
Angeli, Milano Viesti G (2000) Mezzogiorno dei distretti (in Italian). Meridiana, Corigliano Calabro Visconti F (2002) Il governo dei distretti industriali: strategie, strutture e ruoli (in Italian). Egea, Milano von Thünen JH (1933/1826) Der Isolierte Staat in Beziehung auf Landwirtschaft und Nationalökonomie (in Deutsch). Fischer, Jena (or ed Puthes, Hamburg) Weber A (1929/1909) The Theory of the Location of Industries. Chicago University Press, Chicago (or ed Über der Standort der Industrien.