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Trade Policies and the Spatial Distribution of Development: A Two-Sector Analysis

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  • Frances P. Ruane

    (Department of Economics, Trinity College, Dublin, Ireland)

Abstract

The purpose of this paper is to investigate how trade policies which do not have an explicit spatial objective can implicitly influence the spatial pattern of development in an economy. A version of the neoclassical two-sector model is developed to demonstrate how the introduction of tariffs on the output of one sector will generally alter the spatial distribution of economic activities in an economy. It is shown that the greater the degree to which projects in the relatively protected sector are location-specific, the greater are the spatial effects generated, as mobile factors in the economy gravitate towards that sector.

Suggested Citation

  • Frances P. Ruane, 1983. "Trade Policies and the Spatial Distribution of Development: A Two-Sector Analysis," International Regional Science Review, , vol. 8(1), pages 47-58, June.
    • Handle: RePEc:sae:inrsre:v:8:y:1983:i:1:p:47-58
    DOI: 10.1177/016001768300800103
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    References listed on IDEAS

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    1. Fishlow, Albert, 1980. "Who Benefits from Economic Development? Comment," American Economic Review, American Economic Association, vol. 70(1), pages 250-256, March.
    2. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
    3. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
    4. Fields, Gary S, 1977. "Who Benefits from Economic Development?-A Reexamination of Brazilian Growth in the 1960's," American Economic Review, American Economic Association, vol. 67(4), pages 570-582, September.
    5. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-459, May-June.
    6. Fields, Gary S, 1980. "Who Benefits from Economic Development? Reply," American Economic Review, American Economic Association, vol. 70(1), pages 257-262, March.
    7. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(1), pages 58-73.
    8. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    9. Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
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    Cited by:

    1. Andrew M. Isserman, 1996. "“It's Obvious, It's Wrong, and Anyway They Said It Years Ago†? Paul Krugman on Large Cities," International Regional Science Review, , vol. 19(1-2), pages 37-48, April.
    2. Lawrence A. Brown & Victoria A. Lawson, 1989. "Polarization Reversal, Migration Related Shifts in Human Resource Profiles, and Spatial Growth Policies: A Venezuelan Study," International Regional Science Review, , vol. 12(2), pages 165-188, August.

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