Imbalanced Growth and Trade

  • Stuart Holland


Regional theory now includes an extensive variety of Keynesian models. Most of them post-date the emphasis already given to demand in Myrdal or Perroux while it has already been seen that pre-Keynesian theory (for example, Marx and Ohlin) had stressed the role of factor demand in the process of regional resource allocation. In some cases Keynesian models have helped towards an understanding of regional growth and trade mechanisms, especially when tested against available evidence rather than elaborated in complete abstraction. But as some of their own exponents admit, many of these models are limited by relatively simplistic assumptions, and in several cases are subject to internal contradictions which severely limit their use in explaining problems in regional imbalance. More importantly, most of them are based on a Keynesian-neo-classical synthesis of a kind which Keynes’s own theory hardly supports. For instance, they stress equilibrium conditions under which regional self-balance or equilibrium could occur rather than analyse why imbalance and disequilibrium more frequently does occur.


Capital Inflow Regional Income Export Sector Keynesian Model Interregional Trade 
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Copyright information

© Stuart Holland 1976

Authors and Affiliations

  • Stuart Holland
    • 1
  1. 1.European SchoolUniversity of SussexUK

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