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Regional Policy, Integration and the Location of Industry

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  • Forslid, Rikard

    ()
    (Dept. of Economics, Stockholm University)

Abstract

Many countries devote a large part of their national budget to regional policy. This paper analyses the interaction of economic integration and some typical regional policies in a new economic geography model with three regions of different size. The policies analysed are the relocation of government activities, infrastructure investment and subsidies to the establishment of industry. It is shown how regional policy can easily be misdirected.

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File URL: http://www2.ne.su.se/paper/wp03_07.pdf
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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2003:7.

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Length: 17 pages
Date of creation: 01 Jun 2003
Date of revision:
Handle: RePEc:hhs:sunrpe:2003_0007

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Related research

Keywords: agglomeration; economic geography; regional policy;

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Cited by:
  1. Cristobal, Adolfo, 2007. "Trade and migration: a U-shaped transition in Eastern Europe," MPRA Paper 3446, University Library of Munich, Germany.
  2. Forslid, Rikard & Okubo, Toshihiro, 2011. "On the development strategy of countries of intermediate size - An analysis of heterogenous firms in a multiregion framework," CEPR Discussion Papers 8178, C.E.P.R. Discussion Papers.
  3. Vincent Dupont & Philippe Martin, 2006. "Subsidies to poor regions and inequalities: some unpleasant arithmetic," Journal of Economic Geography, Oxford University Press, vol. 6(2), pages 223-240, April.
  4. Cornelius Bähr & Ulrike Stierle-von Schütz & Matthias Wrede, 2007. "Dezentralisierung in den EU-Staaten und räumliche Verteilung wirtschaftlicher Aktivitäten," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(2), pages 110-129, 03.
  5. Ulltveit-Moe, Karen-Helene, 2004. "Regional Policy Design: An Analysis of Relocation, Efficiency and Equity," CEPR Discussion Papers 4321, C.E.P.R. Discussion Papers.
  6. Jürgen von Hagen, 2007. "Institutionelle Gestaltung föderaler Systeme: Theorie und Empirie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(2), pages 109-109, 03.

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