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Economic Base Theory of Regional Growth

In: Empirical Regional Economics

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  • Richard S. Conway

    (Dick Conway and Associates)

Abstract

In the 1950s, Douglass North and Charles Tiebout engaged in a debate on the nature of regional economic growth. The discourse led to the formulation of the economic base model, a simple but powerful means of explaining and forecasting the process of regional economic growth. Fundamentally, the model rests on two propositions: the ability to produce goods and services for export is the key to regional economic growth; and the principal factors of production, namely labor and capital, are mobile. Even in its most rudimentary form, the economic base model provides a reasonable explanation of the divergent economic paths of rural and urban America.

Suggested Citation

  • Richard S. Conway, 2022. "Economic Base Theory of Regional Growth," Springer Texts in Business and Economics, in: Empirical Regional Economics, chapter 0, pages 3-21, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-76646-7_1
    DOI: 10.1007/978-3-030-76646-7_1
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