Journal article

Profitability and growth in multiregion systems: Prologue to a historical geography

M Webber

Economic Geography | Published : 1997

Abstract

Consider the OECD, and divide it into two regions: Japan and the rest. How have rates of profit, the history of capital accumulation and the growth of demand and supply, interregional investment and trade interacted to produce their historical geography? What can we learn from that data about theories of profit, growth, and interregional competition? In this paper, I estimate the parameters of a disequilibrium, dynamic, interregional model that illuminates these questions, paying particular attention to the manner in which investment is generated and flows between regions. I find a complex relationship between productivity and costs, profitability and accumulation. These variables are not we..

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