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Do geographical agglomeration, growth and equity conflict?

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  • Vincent Dupont

Abstract

. The paper analyses the impact of economic integration on individual inequality and regional disparity in a model of endogenous growth and geography. Assuming localised learning externalities and perfect mobility of capital, trade integration of economies yields a trade‐off for the policy maker because it increases growth and decreases inequality on the one hand, but geographical agglomeration strengthens on the other. However, a policy that aims to improve trade in ideas does not face this trade‐off. Abstract. El artículo analiza el impacto de la integración económica en la inecualidad individual y la disparidad regional en un modelo de crecimiento endógeno y geografía. Asumiendo externalidades de aprendizaje localizadas y una perfecta movilidad de capitales, la integración de comercio de economías crea un trade‐off para el formulador de políticas porque por un lado aumenta el crecimiento y disminuye la inecualidad, pero por otro aumenta la aglomeración geográfica. Sin embargo, una política que trate de mejorar un intercambio de ideas no se enfrenta a este trade‐off.

Suggested Citation

  • Vincent Dupont, 2007. "Do geographical agglomeration, growth and equity conflict?," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 193-213, June.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:193-213
    DOI: 10.1111/j.1435-5957.2007.00118.x
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    References listed on IDEAS

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    1. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
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    Cited by:

    1. Breandán Ó'hUallacháin, 2008. "Regional growth transition clubs in the United States," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 33-53, March.
    2. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    3. Guangdong Li & Chuanglin Fang, 2014. "Analyzing the multi-mechanism of regional inequality in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 155-182, January.
    4. Olga Alonso‐Villar, 2008. "A model of economic geography with demand‐pull and congestion costs," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 261-276, June.
    5. Jouke Van Dijk, 2009. "Progress in Regional Science," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 1-2, March.
    6. Tianshu Quan & Tianli Quan, 2023. "A Study of the Spatial Mechanism of Financial Agglomeration Affecting Green Low-Carbon Development: Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    7. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 343-366, March.
    8. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    9. Guangdong Li & Chuanglin Fang, 2018. "Spatial Econometric Analysis of Urban and County-level Economic Growth Convergence in China," International Regional Science Review, , vol. 41(4), pages 410-447, July.
    10. Cerina, Fabio & Mureddu, Francesco, 2014. "Is agglomeration really good for growth? Global efficiency, interregional equity and uneven growth," Journal of Urban Economics, Elsevier, vol. 84(C), pages 9-22.
    11. David Castells & Vicente Royuela, 2012. "Agglomeration, Inequality and Economic Growth: Cross-section and panel data analysis," ERSA conference papers ersa12p492, European Regional Science Association.
    12. Junhua Li & Wenli Cheng, 2015. "Country Size, Economic Structure and Transaction Efficiency: An Asymmetric Spatial General Equilibrium Model of Income Differences across Nations," Monash Economics Working Papers 17-15, Monash University, Department of Economics.
    13. Krieger-Boden, Christiane, 2016. "EU cohesion policy, past and present: Sustaining a prospering and fair European Union?," Kiel Working Papers 2037, Kiel Institute for the World Economy (IfW Kiel).
    14. Kraftova Ivana & Chladek Tomas & Minarik Jakub, 2011. "Do Globalisation and Economic Cycles Reduce the Sector Inequality of Supra-Regions?," European Spatial Research and Policy, Sciendo, vol. 18(2), pages 111-127, November.
    15. Jie Shen & Chunlai Chen & Mengyu Yang & Keyun Zhang, 2019. "City Size, Population Concentration and Productivity: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(1), pages 110-131, January.
    16. Qixuan Li & Ying Xu & Xu Yang & Ke Chen, 2023. "Unveiling the Regional Differences and Convergence of Urban Sprawl in China, 2006–2019," Land, MDPI, vol. 12(1), pages 1-15, January.

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