Sean Michael Crotty, PhD

Chapter 13

Regional Development

Chapter Overview

Theories and practices of regional economic development across different contexts.

This chapter examines how and why some regions prosper while others struggle, and what policies and strategies can promote more balanced regional development. We explore classical and contemporary theories of regional growth, from cumulative causation to new regionalism, and examine the tools governments use to address regional disparities. Understanding regional development is essential for addressing inequality and promoting inclusive economic growth.

Chapter Resources

Required Reading

  • Textbook: Chapter 13
  • Coe, Kelly & Yeung (2019)
  • Economic Geography: A Contemporary Introduction

Download Slides

Video Content

  • Multiple lecture sections
  • Regional development theories
  • Watch at your own pace

Video Lectures

Section 13.1: Regional Inequality & Divergence ~15 minutes

Why do regional disparities exist and persist? Examining patterns of uneven development and the forces that drive regional divergence.

Section 13.2: Theories of Regional Growth ~15 minutes

From neoclassical convergence to cumulative causation: exploring different theoretical frameworks for understanding regional economic dynamics.

Section 13.3: Regional Policy Approaches ~15 minutes

How do governments address regional disparities? Examining traditional regional policies, place-based approaches, and their effectiveness.

Section 13.4: New Regionalism & Governance ~15 minutes

The rise of regional institutions and governance: how regions are becoming key actors in economic development and policy-making.

Key Takeaways

Regional Development Fundamentals

  • Regional disparities are persistent features of most national economies and have significant social and political consequences
  • Market forces alone tend to increase rather than decrease regional inequalities through cumulative causation
  • Effective regional policy requires understanding local contexts and building on existing regional assets
  • Regional governance and institutions play crucial roles in shaping development trajectories

Key Concepts

  • Cumulative Causation: Self-reinforcing processes where initial advantages lead to further concentration of growth
  • Core-Periphery: The spatial structure of developed core regions and dependent peripheral areas
  • Place-Based Policy: Development strategies tailored to specific local conditions and assets
  • New Regionalism: The emergence of regions as key scales of economic governance and coordination
  • Smart Specialization: Regional strategies focused on building competitive advantage in specific sectors

Discussion Questions

Consider these questions as you watch the lectures and complete the readings:

  • What factors explain the economic performance of your home region compared to other regions in your country?
  • Should governments try to "level up" lagging regions, or should resources flow to already successful areas?
  • How do political factors influence regional development policy and the distribution of resources?
  • What role should regional vs. national governments play in economic development?
  • Can declining regions successfully reinvent themselves, and what examples demonstrate this?