A critical examination of the export-base theory of urban-regional growth

Summary

In an early discussion with North on the merits of the export-base theory, Tiebout stated:

The idea that essentially the export base is the necessary and sufficient condition for regional economic growth may be, by definition, a true statement...Put another way, it is possible to define the necessary condition for regional economic growth as the creation of an export base... Again, formally speaking, it is the ability to develop an export base which determines regional growth. Yet in terms of causation, the nature of the residentiary industries will be a key factor in any possible development.