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Spatial development and the law of one price : Evidence of convergence of land values

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  • Joseph J. Capuno

    () (School of Economics, University of the Philippines Diliman)

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    Abstract

    Many developing countries exhibit imbalanced spatial development, but corrective policies are hampered by lack of adequate sub-regional development data. Building on the insights of the factor price equalization theorem and by applying measures of spatial autocorrelation on land values, patterns of local development and linkages in the Philippines are traced. Evidence of convergence in provincial and urban land values is found in 1986-2000, although the clustering is more local than global. Thus, greater infrastructure investments and use of land values by local governments as policy guides should be made to facilitate in-country trade and migration, and to disperse growth.

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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/7/7
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    Bibliographic Info

    Paper provided by University of the Philippines School of Economics in its series UP School of Economics Discussion Papers with number 201001.

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    Length: 27 pages
    Date of creation: Jan 2010
    Date of revision:
    Publication status: Published as UPSE Discussion Paper No. 2010-01, January 2010
    Handle: RePEc:phs:dpaper:201001

    Contact details of provider:
    Postal: Diliman, Quezon City 1101
    Phone: 927-9686
    Web page: http://www.econ.upd.edu.ph/
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    For corrections or technical questions regarding this item, or to correct its listing, contact: (Reuben T. Campos).

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    Keywords: Spatial development; land values; convergence; Philippines;

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