Policy making in asymmetric regional integrations: a methodology for allocating cohesion fund resources
AbstractWe propose a combination of region- and product-identification procedures in order to map the potential of economic activities in areas with poor infrastructure in an asymmetric regional integration. After identifying spatial units with relative backwardness in terms of infrastructure, we detect the most competitive exports, estimate gravity models for each of them and perform simulations for an improvement of 20% in the value of the infrastructure index. In a final step, we identify goods/provinces where investment in infrastructure should be directed to. A thorough and data intensive application is made to the case of the Fondo de Convergencia Estructural del MERCOSUR (FOCEM), the recently created cohesion fund of one of the most asymmetric integration projects. Our main conclusion is that FOCEM resources, under the global objective of enhancing structural convergence among the members, should be totally directed to Paraguay instead of being dispersed among all backward regions in the bloc.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universiteit Antwerpen, Institute of Development Policy and Management (IOB) in its series IOB Working Papers with number 2010.05.
Length: 41 pages
Date of creation: Mar 2010
Date of revision:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- JUSTMAN, Moshe & THISSE, Jacques-François & VAN YPERSELE, Tanguy, .
"Fiscal competition and regional differentiation,"
CORE Discussion Papers RP
-1849, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Andres RodrIguez-Pose & Ugo Fratesi†, 2004.
"Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions,"
Taylor & Francis Journals, vol. 38(1), pages 97-113.
- Andrés Rodríguez-Pose & Ugo Fratesi, 2003. "Between development and social policies: the impact of European Structural Funds in Objective 1 Regions," European Economy Group Working Papers 28, European Economy Group.
- Mauricio Mesquita Moreira, 2007.
"Trade costs and the economic fundamentals of the initiative for integration of regional infrastructure in South America (IIRSA),"
INTAL Working Papers
1460, Inter-American Development Bank, INTAL.
- Mauricio Mesquita Moreira, 2007. "Trade Costs and the Economic Fundamentals of the Initiative for Integration of Regional Infrastructure in South America (IIRSA)," IDB Publications 9278, Inter-American Development Bank.
- Puga, Diego, 2001.
"European Regional Policies in Light of Recent Location Theories,"
CEPR Discussion Papers
2767, C.E.P.R. Discussion Papers.
- Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
- Röller, Lars-Hendrik & Waverman, Leonard, 2000.
"Telecommunications Infrastructure And Economic Development: A Simultaneous Approach,"
CEPR Discussion Papers
2399, C.E.P.R. Discussion Papers.
- Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
- Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Henry G Overman & L Alan Winters, 2005. "The port geography of UK international trade," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1751-1768, October.
- Combes, Pierre-Philippe & Lafourcade, Miren, 2011. "Competition, market access and economic geography: Structural estimation and predictions for France," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 508-524.
- Fr�d�ric Robert-Nicoud, 2006. "Agglomeration and Trade with Input–Output Linkages and Capital Mobility," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 101-126.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 291-316, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hans De Backer).
If references are entirely missing, you can add them using this form.