Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Center-periphery Dilemma and the Issue of Equity in Regional Development

Contents:

Author Info

  • Daniel Shefer

    ()

Registered author(s):

    Abstract

    Different regions are endowed with production factors and characteristics that offer different opportunities for specialization, which can be transform to a regional comparative advantage. Many outlying regions (peripheral regions) suffer from a high rate of unemployment, low level of per capita income and net out migration. Outlying areas attract less investment in comparison to central regions. This is because of the low marginal productivity of factors of production in the outlying areas. In order to alleviate these hardships, inflicted on outlying regions, central governments often devise incentive and investment programs whose main objective is to reduce the gap between regions in the country and thus reduce regional inequalities. To attract high tech industries to outlaying regions is now in vogue. In reality we observe a distinct geographical distribution between centers of R&D and large mass production plants. This is due primarily to agglomeration economies and industrial cluster in central regions. Mass production, because of their needs for a large number of relatively unskilled labors gravitates towards the edge of Metropolitan regions and the outlying areas. But then their contribution to the wellbeing of the population in these regions is limited. Public/private investment in large scale facilities (or infrastructures), like highways and railways, Technological Incubators, R&D Centers, universities and hospitals, are among the projects proposed in order to facilitates economic growth in outlying areas. However investing in these projects is not necessarily the panacea for outlaying areas. Because of scarce resources it is paramount to select the most cost-effective program which will take into account the profile of the region under consideration, its natural endowments, and the administrative and political structure of the local government and its ability, together with the region's population, to turn the chosen program to a success. In this paper we critically discuss the spatial implications of selected public investment programs design to facilitate the development of peripheral regions.

    Download Info

    If 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.
    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01192.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1192.

    as in new window
    Length:
    Date of creation: Sep 2011
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa11p1192

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer, vol. 39(3), pages 457-469, 09.
    2. Kurt Geppert & Michael Happich & Andreas Stephan, 2005. "Regional Disparities in the European Union: Convergence and Agglomeration," Discussion Papers of DIW Berlin 525, DIW Berlin, German Institute for Economic Research.
    3. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
    4. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    5. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    6. Fujita, M. & Thisse, J.-F., . "Economics of agglomeration," CORE Discussion Papers RP -1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Papers in Regional Science, Springer, vol. 83(1), pages 139-164, October.
    8. Masahisa Fujita & Tomoya Mori, 2005. "Frontiers of the New Economic Geography," KIER Working Papers 604, Kyoto University, Institute of Economic Research.
    9. Philip McCann & Daniel Shefer, 2003. "Location, agglomeration and infrastructure," Economics of Governance, Springer, vol. 83(1), pages 177-196, October.
    10. Rietveld, Piet, 1994. "Spatial economic impacts of transport infrastructure supply," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 329-341, July.
    11. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
    12. Daniel Graham & H. Kim, 2008. "An empirical analytical framework for agglomeration economies," The Annals of Regional Science, Springer, vol. 42(2), pages 267-289, June.
    13. Sylvie Charlot & Carl Gaigné & Frédéric Robert-Nicoud & Jacques-François Thisse, 2006. "Agglomeration and welfare: the core-periphery model in the light of Bentham, Kaldor, and Rawls," Working Papers 12374, Institut National de la Recherche Agronomique, France.
    14. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444, September.
    15. Nijkamp, P. & Abreu, M., 2009. "Regional development theory," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    16. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
    17. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    18. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
    19. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
    20. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    21. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
    22. Grossman, G.M. & Helpman, E., 1993. "Endogenous, Innovation in the Theory of Growth," Papers 165, Princeton, Woodrow Wilson School - Public and International Affairs.
    23. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
    24. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    25. Anders Malmberg & Dominic Power, 2005. "(How) Do (Firms in) Clusters Create Knowledge?," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 409-431.
    26. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 1-6, Summer.
    27. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    28. Dapeng Hu & Masahisa Fujita, 2001. "Regional disparity in China 1985-1994: The effects of globalization and economic liberalization," The Annals of Regional Science, Springer, vol. 35(1), pages 3-37.
    29. Lynde, Catherine & Richmond, James, 1992. "The Role of Public Capital in Production," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 37-44, February.
    30. D Shefer, 1975. "A mathematical model for the location of industry in developing areas," Environment and Planning A, Pion Ltd, London, vol. 7(3), pages 251-262, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1192. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.