This paper discusses the post-Keynesian explanation of the causes of disparities in regional growth and unemployment rates. It begins by examining the relationship between the real wage rate, the level of demand and regional unemployment. Next, it shows how regional growth is primarily...

This paper is the first part of a consideration of the implications of the current controversies in macroeconomics for regional growth theory. It is concerned with the neoclassical explanation of disparities in regional growth and unemployment rates. The one-sector and two-sector neoclassical...