Endogenous growth theory and regional development policy

  • Slobodan Cvetanović University of Niš, Faculty of Economics, Niš, Serbia
  • Milorad Filipović University of Belgrade, Faculty of Economics, Belgrade, Serbia
  • Miroljub Nikolić Ministry of Economy, Department of Regional Development and Strategic Analyses of Economy, Belgrade, Serbia
  • Duško Belović Investment Project Group, Belgrade, Serbia
Keywords: endogenous growth, endogenous growth theory, regional development, regional development policy, regional competitiveness


The numerous versions of endogenous explanations of economic growth emphasize the importance of technological change driving forces, as well as the existence of appropriate institutional arrangements. Endogenous growth theory contributes to a better understanding of various experiences with long-term growth of countries and regions. It changes the key assumptions of the Neoclassical growth theory and participates in the modern regional development physiology explanation. Based on these conclusions, the paper: a) explicates the most important theoretical postulates of the theory, b) explains the most important factors of economic growth in the regions in light of the Endogenous growth theory messages and c) emphasizes the key determinants of regional competitiveness which in our view is conceptually between the phenomena of micro- and macro-competitiveness and represents their necessary and unique connection. First of all, micro-competitiveness is transformed into a regional competitiveness; then regional competitiveness is transformed into a macro-competitiveness. In turn, macro - influences the microeconomic competitiveness, and the circle is closed. After that, the process starts over again.


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