Abstract
A region's producing sectors compete in national markets with other regions, and its output growth therefore depends on changes in the region's sectoral input costs relative to those in other regions. In this model, production costs are taken as dependent upon wages and other payments to local factors and upon costs of interindustry inputs, the producers of which pay wages and other factor costs locally or, if the inputs are imported, in other regions. After consideration of conditions by which regional commodity supply functions can be aggregated, sectoral commodity prices and the regional production of national and local goods are endogenously determined in a computable equilibrium system within a balanced regional model framework.
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Silvers, A.L. Regional competitive advantage and growth in national interindustry markets. Papers of the Regional Science Association 67, 147–158 (1989). https://doi.org/10.1007/BF01934673
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DOI: https://doi.org/10.1007/BF01934673