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The revised edition of this classic text contains discussions of the latest theoretical developments in regional economics and reviews recent changes in regional policy and institutions in the European Union. New case study material based on extensive academic research in Europe and the USA has been added throughout the book. This book is organized in two free-standing parts examining firstly the economic analysis of regions and then regional policy issues. Topics covered include multiplier and impact analysis, input-output models, growth theory, migration, regional labor markets, regional policy in the EU, regional devolution, small firms policy, foreign direct investment and a detailed explanation of the methods used to evaluate regional policy. Chapters can be read independently in cases where focused information is required, and the organization of the book makes this a very flexible and effective resource for course use.