Can regional policies accelerate the convergence path of dualistic economic growth\ud in a single country, offsetting market failures and making growth transmission channels more \ud efficient? A structural dynamic econometric model has been set up in order to account for these \ud changes. Three are the main sources of growth playing a role in this context: the 'neigh bourhood' \ud effect, the interaction between the economic environment and the agents' expectations, and the \ud policy impact on economic take-off. The evidence shows that policies strongly boost economic growth \ud of a local area and narrow the gap between the regions of a dual economy
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