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Industrial distribution effect on the local public goods

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  • A. Furukawa

    (Chukyo University)

Abstract

This paper analyzes the effect of industrial location on the provision of local public goods in two regions. Initially, two regions are asymmetric because industrial firm agglomerates in one region and the other region do not provide a local public good. When industrial firms disperse across regions, the local government that does not provide it gets the larger revenue. In this case, this paper analyzes whether the local government provides it or not. The results depend on the population through the land rent. Only when the population belongs to some range, through industrial dispersion, does the local government change the behavior toward the local public good. In this case, the industrial distribution will make the local decentralization is desirable for efficiency without the central government's intervention.

Suggested Citation

  • A. Furukawa, 2017. "Industrial distribution effect on the local public goods," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 379-397, October.
    • Handle: RePEc:spr:apjors:v:1:y:2017:i:2:d:10.1007_s41685-017-0036-2
    DOI: 10.1007/s41685-017-0036-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Local public goods; Asymmetric district; Industrial distribution; Free riders;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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