Effect of Population Density, Division and Distance on Regional Economic Growth

The three basic concepts which are fundamental to the framework of this study are the 3Ds –Density, Distance and Division. These Variables was introduced by World Development Report 2009.Population Density refers to the Population mass per unit of land area, or the geographic compactness of population. Distance refers to the ease or difficulty for goods, services, labor, capital, information, and ideas to traverse space. Distance, in this sense, is an economic concept, not just a physical one. Division is the most important dimension internationally. Religion, ethnicity, and language are among the main attributes that lead to divisions between places. Thus, the main aim of this paper is analysis of the effect of population density, economic distance and division on regional economic growth. For this aim, this study was proposed a simple theoretical framework to study the impact of population density, economic distance and division on regional economic growth. The framework has presented in a unified way the main insights of NEG models with endogenous growth and free capital mobility.