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Regional Disparities, Growth, and Inclusiveness

Author

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  • Mr. Holger Floerkemeier
  • Mr. Nikola Spatafora

Abstract

We discuss regional disparities in economic performance and living standards. We first set out some key facts, and provide a conceptual framework to help analyze whether such disparities are efficient, or instead reflect market and/or policy failures. We examine whether policy attempts to reduce regional disparities necessarily involve a trade-off between equity and efficiency. We then investigate whether policymakers should focus on boosting the economic performance of lagging regions—or, conversely, accept the presence of regional disparities, and instead assist households in lagging regions through transfer payments, investments in education, health, and other basic services, and by facilitating out-migration.

Suggested Citation

  • Mr. Holger Floerkemeier & Mr. Nikola Spatafora, 2021. "Regional Disparities, Growth, and Inclusiveness," IMF Working Papers 2021/038, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/038
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    Citations

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    Cited by:

    1. Bart van Ark, 2021. "Putting Together the Pieces of the Productivity Puzzle: Review Article of Productivity Perspectives and Productivity and the Pandemic," International Productivity Monitor, Centre for the Study of Living Standards, vol. 40, pages 118-133, Spring.
    2. Nils Grashof & Stefano Basilico, 2023. "The dark side of green innovation? Green transition and regional inequality in Europe," Papers in Evolutionary Economic Geography (PEEG) 2314, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2023.
    3. Chowdhury, Sourav & Kasemi, Nuruzzaman & Singh, Aditya & Chakrabarty, Mahashweta & Singh, Shivani, 2023. "Decomposing the gap in undernutrition among under-five children between EAG and non-EAG states of India," Children and Youth Services Review, Elsevier, vol. 145(C).
    4. Liam O'Farrell & Roman Zwicky, 2022. "“The System Is the System, Isn’t It?”: The Case for a Just Devolution," Urban Planning, Cogitatio Press, vol. 7(3), pages 75-85.
    5. Berbée, Paul & Braun, Sebastian & Franke, Richard, 2022. "Reversing fortunes of German regions, 1926-2019: Boon and bane of early industrialization?," ZEW Discussion Papers 22-025, ZEW - Leibniz Centre for European Economic Research.
    6. Albanese, Giuseppe & Carrieri, Vincenzo & Speziali, Maria Maddalena, 2021. "Looking for a Star: Evaluating the Effect of the Cohesion Policy on Regional Well-Being," IZA Discussion Papers 14521, Institute of Labor Economics (IZA).
    7. Ashton de Silva & Maria Yanotti & Sarah Sinclair & Sveta Angelopoulos, 2023. "Place‐Based Policies and Nowcasting," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(3), pages 363-370, September.

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