The paper presents an extended interregional social accounting matrix (SAM) framework, derived from a Danish interregional computable general equilibrium (CGE) model, as the basis for a decomposition of regional income growth in Denmark in the period 1980–98. The decomposition analysis indicates that there is some evidence for a reversal in the trend of location of economic activity in Denmark in the 1990s and provides evidence on the causes of this trend reversal.
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