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Geography and the Inclusive Economy: A Regional Perspective

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    Abstract

    The paper expands on the regional geographic dimensions of the inclusive economy outlined in Treasury Working Paper 01/15 Towards an Inclusive Economy. It discusses the extent to which differences in economic and social indicators across regions might constitute problems, illustrates the importance of understanding empirical patterns of deprivation in New Zealand and outlines some key policy directions. In some instances, differences in indicators of well-being between regions indicate positive dynamics, for example cities generate higher productivity and wages as well as consumption benefits. In other instances, regional differences may be problematic, for example when spillovers perpetuate social problems or people become stuck in declining areas. Auckland is important - it contains 36% of all deprived neighbourhoods in New Zealand, and the proportion is growing over time. Rural deprived regions, particularly Northland and Gisborne with 24% of their population living in deprived neighbourhoods, also warrant attention if people are stuck or community functioning is impaired. There is a high preponderance of Maori and Pacific peoples in both urban and rural deprived neighbourhoods. Avenues for policy exploration include education, enhancing connectedness, and ensuring that people are free to move to job-rich areas. Intervention in local economies needs to be selective and evaluation of all policy intervention is important. Policies that are spatially neutral may have unintended spatial effects and this also requires further attention.

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    File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2001/01-17/twp01-17.pdf
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    Bibliographic Info

    Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 01/17.

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    Length: 22 pages
    Date of creation: 2001
    Date of revision:
    Handle: RePEc:nzt:nztwps:01/17

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    Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
    Phone: +64-4-472 2733
    Fax: +64-4-473 0982
    Web page: http://www.treasury.govt.nz
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    Keywords: economic geography; spatial distribution; deprivation; regions; regional policy;

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    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Suzi Kerr & Jason Timmins, 2000. "Economic Geography and Spatial Statistics: Theory and Empirics of New Zealand Regions," Treasury Working Paper Series 00/11, New Zealand Treasury.
    3. Jess Gaspar & Edward Glaeser, 1996. "Information Technology and the Future of Cities," NBER Working Papers 5562, National Bureau of Economic Research, Inc.
    4. Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
    5. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
    6. David C Mare & Peter Mawson & Jason Timmins, 2001. "Deprivation in New Zealand: Regional Patterns and Changes," Treasury Working Paper Series 01/09, New Zealand Treasury.
    7. Glaeser, E.L. & Mare, D.C., 1994. "Cities and Skills," Working Papers e-94-11, Hoover Institution, Stanford University.
    8. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    9. Sarah Box, 2000. "Economic Geography - Key Concepts," Treasury Working Paper Series 00/12, New Zealand Treasury.
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