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The Effects of Globalization on Regional Inequality in a Model of Semi-Endogenous Growth and Foot-loose Capital

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  • Katsufumi Fukuda

    (Graduate School of Economics, Kobe University, JAPAN)

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    Abstract

    We show that two regions converge under trade liberalization two regions converge by means of a semi-endogenous R&D growth model with international trade, foot-loose capital, local knowledge spillovers in an open economy, and full agglomeration of modern goods firms in a country.

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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2013-25.pdf
    File Function: First version, 2013
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    Bibliographic Info

    Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2013-25.

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    Length: 7 pages
    Date of creation: Aug 2013
    Date of revision:
    Handle: RePEc:kob:dpaper:dp2013-25

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    Postal: 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN
    Phone: +81-(0)78 803 7036
    Fax: +81-(0)78 803 7059
    Web page: http://www.rieb.kobe-u.ac.jp/index-e.html
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    Keywords: Trade integration; Foot-loose capital; R&D growth; Scale effects; Regional Inequality; local spillovers; Full agglomeration;

    References

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    1. Wan, Guanghua & Lu, Ming & Chen, Zhao, 2006. "Globalization and Regional Income Inequality: Empirical evidence from within China," Working Paper Series RP2006/139, World Institute for Development Economic Research (UNU-WIDER).
    2. Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
    3. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
    4. Elias Dinopoulos & Peter Thompson, 1999. "Scale effects in Schumpeterian models of economic growth," Journal of Evolutionary Economics, Springer, vol. 9(2), pages 157-185.
    5. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
    6. Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-35, December.
    7. Minniti, Antonio & Parello, Carmelo Pierpaolo, 2011. "Trade integration and regional disparity in a model of scale-invariant growth," Regional Science and Urban Economics, Elsevier, vol. 41(1), pages 20-31, January.
    8. Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
    9. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
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