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Spatial inequalities in economic performance: the key role of human capital


  • Jim Taylor


This paper investigates the role of human capital formation in determining spatial disparities in economic performance. An informal model attempts to explain why spatial inequalities in economic performance persist over the long run. Empirical evidence indicates that the critical variable in this process is the proportion of high skill workers in a locality. Localities with a poor economic performance invariably have a low proportion of high-skill workers. The main conclusion is that government policy needs to focus on improving educational attainment and workforce skills in low income / high unemployment areas if their competitiveness is to be substantially improved.

Suggested Citation

  • Jim Taylor, 2003. "Spatial inequalities in economic performance: the key role of human capital," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(2).
  • Handle: RePEc:fan:scresc:v:html10.3280/scre2003-002001

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    References listed on IDEAS

    1. Silvia Saddi & Raffaele Paci, 2002. "Capitale pubblico e produttività nelle regioni italiane," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2002(3).
    2. Lever, W F, 1975. "Regional Multipliers and Demand Leakages at Establishment Level: A Reply," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 103-106, February.
    3. Stefano Casini Benvenuti & Giandemetrio Marangoni, 1999. "Infrastructure and Performance of the Italian Economic System," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 439-455.
    4. Raffaele Paci & Francesco Pigliaru, 1999. "Growth and sectoral dynamics in the Italian regions," Chapters,in: Economic Growth and Change, chapter 12 Edward Elgar Publishing.
    5. R. Paci & A. Saba, 1997. "The empirics of regional Economic growth in italy. 1951-1993," Working Paper CRENoS 199701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    6. Sinclair, M Thea & Sutcliffe, Charles M S, 1982. "Keynesian Income Multipliers with First and Second Round Effects: An Application to Tourist Expenditure," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 44(4), pages 321-338, November.
    7. Black, Philip A, 1981. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(3), pages 227-235, November.
    8. A.G.M. Nairn & J.K. Swales, 1987. "Area Policy Impacts: A Multiplier Analysis of GEAR," Urban Studies, Urban Studies Journal Limited, vol. 24(1), pages 31-45, February.
    9. Sinclair, M Thea & Sutcliffe, Charles M S, 1983. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier: An Extension," Scottish Journal of Political Economy, Scottish Economic Society, vol. 30(3), pages 275-286, November.
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