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The dynamics of regional inequalities

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  • Eric Strobl,
  • Salvador Barrios

Abstract

This paper analyses empirically the link between regional inequalities and economic development. Our starting hypothesis in this regard is that the evolution of regional inequalities should follow a bell-shaped curve depending on the level of national economic development since growth by its very nature is unlikely to appear everywhere at the same time, as has been argued by a number of authors, such as Kuznets (1955) to Lucas (2000). We test this hypothesis econometrically using semi-parametric estimation techniques and regional data for a panel of European countries. Our results provide strong support for such a bell-shaped curve and are robust to changing the regional administrative units and the time period, as well as controlling for other possible determinants of regional inequalities. We derive a number of policy implications from our results.

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Paper provided by FEDEA in its series Working Papers with number 2006-01.

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Date of creation: Feb 2006
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Handle: RePEc:fda:fdaddt:2006-01

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  1. Danyang Xie & Heng-fu Zou & Hamid Davoodi, 1999. "Fiscal Decentralization and Economic Growth in the United States," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 109, China Economics and Management Academy, Central University of Finance and Economics.
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Cited by:
  1. Baker, Terence J. & FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Summary and Conclusions," Book Chapters, in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 12, pages 339-352 Economic and Social Research Institute (ESRI).
    • Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Summary and Conclusions," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 24, pages 317-333 Economic and Social Research Institute (ESRI).
  2. Vassilis Monastiriotis, 2011. "Regional Growth Dynamics in Central and Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series, European Institute, LSE 33, European Institute, LSE.
  3. Klaus Schmidt-Hebbel, 2008. "Chile’s Growth and Development: Leadership, Policy-Making Process, Policies, and Results," Working Papers Central Bank of Chile, Central Bank of Chile 507, Central Bank of Chile.
  4. Andrés J. Marchante Mera & Bienvenido Ortega Aguaza & José Sánchez Maldonado, 2006. "Las dimensiones del bienestar en las Comunidades Autónomas Españolas. Un análisis de Sigma y Gamma-Convergencia," Working Papers 2006-05, FEDEA.
  5. Fahey, Tony & Scott, Susan & FitzGerald, John, 2006. "Sports and Arts," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  6. Morgenroth, Edgar & FitzGerald, John (ed.), 2006. "Ex-ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013," Research Series, Economic and Social Research Institute (ESRI), Economic and Social Research Institute (ESRI), number PRS59.
  7. O'Connell, Philip J. & Russell, Helen & FitzGerald, John, 2006. "Human Resources," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  8. Leonardo Monasterio, 2011. "The Regional Inequality Frontier: Brazil (1872-2000)," ERSA conference papers ersa10p353, European Regional Science Association.
  9. Fahey, Tony & Russell, Helen & FitzGerald, John, 2006. "Childcare," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  10. Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Productive Sector," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 20, pages 257-277 Economic and Social Research Institute (ESRI).
  11. Goletsis, Y. & Chletsos, M., 2011. "Measurement of development and regional disparities in Greek periphery: A multivariate approach," Socio-Economic Planning Sciences, Elsevier, vol. 45(4), pages 174-183, December.
  12. Tate, Robert & Finlayson, Greg & MacWilliam, Leonard & Wiley, Miriam M. & Morgenroth, Edgar & FitzGerald, John, 2006. "Health," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  13. Klaus Schmidt-Hebbel, 2012. "The Political Economy of Distribution and Growth in Chile," Documentos de Trabajo, Instituto de Economia. Pontificia Universidad Católica de Chile. 417, Instituto de Economia. Pontificia Universidad Católica de Chile..
  14. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
  15. Pedro N. Rodríguez, & Simón Sosvilla-Rivero, 2006. "Understanding and Forecasting Stock Price Changes," Working Papers 2006-03, FEDEA.

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