Regional Growth Theory

Regional Growth Theory examines how different areas develop economically over time. It suggests that factors like geography, resources, infrastructure, and human capital contribute to a region's growth. Regions with advantages, such as skilled workers or good transport links, often experience faster economic development. The theory also considers how economic activities can cluster together, leading to innovation and job creation. Understanding these dynamics helps policymakers create strategies to promote balanced economic growth across regions, ensuring that less developed areas can catch up with more prosperous ones.