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Public Expenditure and Economic Geography

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  • Federico Trionfetti

Abstract

Adding public expenditure to the core-periphery model creates a linkage that can override the agglomeration forces. Consequently, the equilibrium distribution of economic activity depends upon the nature and allocation of public expenditure. Appropriate public expenditure eliminates the possibility that economic integration results in total agglomeration of manufacturing. A corollary is that (contrary to the core-periphery model) location matters even in the absence of transport costs. Tied aid, and international transfers are also considered.

Suggested Citation

  • Federico Trionfetti, 1997. "Public Expenditure and Economic Geography," Annals of Economics and Statistics, GENES, issue 47, pages 101-120.
    • Handle: RePEc:adr:anecst:y:1997:i:47:p:101-120
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    File URL: http://www.jstor.org/stable/20076084
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    Cited by:

    1. Simonetta Longhi & Peter Nijkamp & Iulia Traistaru, 2003. "Determinants of Manufacturing Location in EU Accession Countries," ERSA conference papers ersa03p310, European Regional Science Association.
    2. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia, 2009. "Footloose Capital and Productive Public Services," Chapters, in: Neri Salvadori & Pasquale Commendatore & Massimo Tamberi (ed.), Geography, Structural Change and Economic Development, chapter 1, Edward Elgar Publishing.
    3. Pasquale Commendatore & Ingrid Kubin, 2016. "Source versus residence: A comparison from a new economic geography perspective," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 201-222, June.
    4. Rhydian James & Peter Midmore & Dennis Thomas, 2012. "Public Sector Size and Peripherality," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(4), pages 447-460, December.
    5. Claude LACOUR (IERSO, IFReDE-GRES) & Stéphane VIROL (IERSO, IFReDE-GRES), 2005. "European regional policy: new bases, new borders? (In French)," Cahiers du GRES (2002-2009) 2005-21, Groupement de Recherches Economiques et Sociales.
    6. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    7. Susana IRANZO, 2010. "Trade Liberalization, Agglomeration and Public Policies: the Case of the European Regional Policies," EcoMod2004 330600070, EcoMod.
    8. Shingal, Anirudh, 2013. ""New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement," MPRA Paper 49138, University Library of Munich, Germany.
    9. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    10. Chiara Carboni & Elisabetta Iossa & Gianpiero Mattera, 2018. "Barriers towards foreign firms in international public procurement markets: a review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 85-107, March.
    11. Luca Ricci, 2006. "Uncertainty, Flexible Exchange Rates, and Agglomeration," Open Economies Review, Springer, vol. 17(2), pages 197-219, April.
    12. Luis Fernando Lanaspa & Fernando Pueyo & Fernando Sanz, 2001. "The Public Sector and Core-Periphery Models," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1639-1649, September.
    13. Stéphane Riou, 2003. "Géographie, croissance et politique de cohésion en Europe," Revue Française d'Économie, Programme National Persée, vol. 17(3), pages 171-220.
    14. Daniel, Karine & Kilkenny, Maureen, 2002. "Decoupled Payments and the Localization of Activities," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24942, European Association of Agricultural Economists.
    15. Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
    16. Stefan Wrzaczek, 2014. "Social optimality in the constructed-capital model," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 22(1), pages 211-232, March.

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