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The ‘Trade-off’ between Spatial Equity and Economic Efficiency Revisited: Evidence from the US States

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  • Alexiadis, Stilianos
  • Eleftheriou, Konstantinos

Abstract

The principle aims of regional policy can be encapsulated in terms of ‘spatial equity’ and ‘economic efficiency’. Establishing the relation between these two aims is of fundamental importance. Conventionally, however, it is assumed that there is a conflict or a ‘trade-off’ between them. In this paper, a hopeful view, i.e. that the two aims are complementary rather than competitive, is put forward. The validity of this view is examined empirically using data for the US States covering the period 1972-2005. The obtained results map an instructive framework for regional policy where the scope for reducing regional inequalities is not incompatible with improvements in economic efficiency.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24372.

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Date of creation: 11 Aug 2010
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Handle: RePEc:pra:mprapa:24372

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Keywords: regional growth; regional policy; spatial equity; trade-off;

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  1. Ulltveit-Moe, Karen Helene, 2007. "Regional policy design: An analysis of relocation, efficiency and equity," European Economic Review, Elsevier, vol. 51(6), pages 1443-1467, August.
  2. Breunig, Robert, 2001. "An almost unbiased estimator of the coefficient of variation," Economics Letters, Elsevier, vol. 70(1), pages 15-19, January.
  3. Rietveld, Piet, 1991. "A note on interregional versus intraregional inequality," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 627-637, December.
  4. Anderstig, Christer & Mattsson, Lars-Goran, 1989. "Interregional Allocation Models of Infrastructure Investments," The Annals of Regional Science, Springer, vol. 23(4), pages 287-98.
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Cited by:
  1. Iritié, Jean-Jacques B-G., 2012. "Effets des pôles de compétitivité dans les industries de haute technologie : une analyse d'économie industrielle de l'innovation
    [Effects of competitiveness clusters in high technology industries:
    ," MPRA Paper 46686, University Library of Munich, Germany.
  2. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité
    [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]
    ," MPRA Paper 54429, University Library of Munich, Germany.

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