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- W2314804057 abstract "IN THIS ARTICLE we shall develop a theory to explain the existence of interstate differences in rates of growth of manufacturing employment among states linked together in a free market area. This free market area is characterized by free trade, free capital movements, and the use of a common currency. The contemporary theories of economic growth have concerned themselves with a closed economy and have not explained the existence of interstate differences in growth rates in a free market area. The United States of America constitute a free market area and, as such, provide an excellent subject for analysis. Over the period covered, certain empirical regularities have been discovered concerning the process of growth. These regularities are described in Part 1 and are the phenomena to be explained by a theory of growth. The need -for a theory of growth is developed in Part 2, where the inadequacy of simplistic rationalizations is demonstrated. Part 3 presents a theory of growth which implies the phenomena cited in Part 1. The explanatory power of this theory is explicitly stressed in Part 4. There exist an unlimited number of theories which are compatible with a given set of data. The virtues of the theory presented here are: (a) it is testable against the available data; (b) it implies the data cited in Part 1; (c) the theory is conceptually simple and is based upon a competitive model; and (d) the crucial variable is the rate of growth of the labor supply curve rather than a nebulous variable like natural resources endowment." @default.
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- W2314804057 date "1960-05-01" @default.
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- W2314804057 title "A Theory of Interstate Differences in the Rates of Growth of Manufacturing Employment in a Free Market Area" @default.
- W2314804057 doi "https://doi.org/10.2307/2525291" @default.
- W2314804057 hasPublicationYear "1960" @default.
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