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Equilibrium Regional Disparities: Theory and British Evidence

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  • Patricia Rice
  • Anthony Venables

Abstract

R ICE P. and V ENABLES A. J. (2003) Equilibrium regional disparities: theory and British evidence, Reg. Studies 37 , 675-686. Regional inequalities in many countries, including the UK, are large and persistent. They show up in a number of economic variables, most of them endogenous, making it difficult for the researcher to identify the underlying causes of the disparities. This paper uses sub-regional data for Great Britain to identify spatial patterns of disparities. It then compares these patterns with those predicted by a theoretical model under a number of alternative hypotheses about the underlying cause of the disparities. The approach lays the groundwork for theory based econometric modelling of the causes of regional inequalities. R ICE P. et V ENABLES A. J. (2003) Desequilibres regionaux: la theorie et les preuves britanniques, Reg. Studies 37 , 675-686. Dans beaucoup de pays, y compris la Grande-Bretagne, les inegalites sont importantes et persistantes. Elles se manifestent a partir de nombreuses variables economiques, dont la plupart sont endogenes, ce qui le rend difficile pour le chercheur d'identifier les causes sous-jacentes des inegalites. Cet article se sert des donnees infraregionales pour la Grande-Bretagne afin d'identifier la distribution geographique des inegalites. Puis on cherche a comparer ces distributions a celles qui sont prevues par un mode le theorique sous quelques hypotheses alternatifs sur les causes sous- jacentes des inegalites. Cette facon fait le travail pre paratoire pour une modelisation econometrique des causes des inegalites regionales basee sur des the ories. R ICE P. und V ENABLES A. J. (2003) Gleichgewicht und regionale Ungleichheiten. Theorie und Beweise aus Grossbritannien, Reg. Studies 37 , 675-686. In vielen Landern, einschliesslich des UK, gibt es grosse und anhaltende regionale Ungleichheiten. Sie treten in Form zahlreicher wirtschaftlicher Veranderlicher auf, die meisten endogen; das erschwert es dem Forscher, herauszufinden, was den Ungleichheiten zugrunde liegt. Dieser Aufsatz stutzt sich auf Daten von Teilregionen Grossbritannier's, um raumliche Muster von Ungleichheiten herauszustellen. Anschliessend werden diese Muster mit jenen verglichen, die ein theoretisches Modell von einer Anzahl alternativer Hypothesen uber die zugrunde liegenden Ursachen der Ungleichheiten vorausgesagt hatte. Der Ansatz legt den Grundstein fur auf Theorie gestutzte okonometrische Modelle der Ursachen regionaler Ungleichheiten.

Suggested Citation

  • Patricia Rice & Anthony Venables, 2003. "Equilibrium Regional Disparities: Theory and British Evidence," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 675-686.
    • Handle: RePEc:taf:regstd:v:37:y:2003:i:6-7:p:675-686
    DOI: 10.1080/0034340032000108769
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    1. Nicholas Crafts, 2009. "European Growth in the Age of Regional Economic Integration : Convergence Big Time?," World Bank Publications - Reports 9098, The World Bank Group.
    2. Rice, Patricia & Venables, Anthony J. & Patacchini, Eleonora, 2006. "Spatial determinants of productivity: Analysis for the regions of Great Britain," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 727-752, November.
    3. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    4. Christopher Candelaria & Mary C. Daly & Galina Hale, 2009. "Beyond Kuznets: persistent regional inequality in China," Working Paper Series 2009-07, Federal Reserve Bank of San Francisco.
    5. Henry Overman & Patricia Rice & Anthony Venables, 2010. "Economic Linkages across Space," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 17-33.
    6. Andrew B. Bernard & Stephen Redding & Peter K. Schott & Helen Simpson, 2003. "Relative wage variation and industry location," IFS Working Papers W03/17, Institute for Fiscal Studies.
    7. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    8. Langa, Estêvão Salvador & Giannetti, Biagio F. & Sevegnani, Fábio & Agostinho, Feni & Almeida, Cecília M.V.B., 2025. "From theory to application: measuring development disparities in Mozambique through an Odum-inspired emergy framework," Ecological Modelling, Elsevier, vol. 510(C).
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    10. Ulltveit-Moe, Karen Helene, 2007. "Regional policy design: An analysis of relocation, efficiency and equity," European Economic Review, Elsevier, vol. 51(6), pages 1443-1467, August.
    11. Artan QINETI & Eva MATEJKOVÁ & Miriam PIETRIKOVÁ & Roman SERENČEŠ & Marián Tóth & Marek DVOŘAK, 2011. "Looking for the evidence of socio-economic convergence within the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(8), pages 384-393.
    12. Christopher Candelaria & Mary Daly & Galina Hale, 2015. "Persistence of Regional Wage Differences in China," Pacific Economic Review, Wiley Blackwell, vol. 20(3), pages 365-387, August.
    13. Bernard Fingleton, 2007. "A multi-equation spatial econometric model, with application to EU manufacturing productivity growth," Journal of Geographical Systems, Springer, vol. 9(2), pages 119-144, June.
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    15. Vickerman, Roger, 2008. "Transit investment and economic development," Research in Transportation Economics, Elsevier, vol. 23(1), pages 107-115, January.
    16. Tim Leunig & Henry Overman, 2008. "Spatial patterns of development and the British housing market," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(1), pages 59-78, spring.
    17. Vania Sena & Dolores Anon Higon, 2014. "Productivity, R&D Spillovers and Educational Attainment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(1), pages 1-23, February.
    18. Bode, Eckhardt, 2006. "Commuting, externalities, and the geographical sizes of metropolitan areas," Kiel Working Papers 1289, Kiel Institute for the World Economy.
    19. Eleonora Patacchini, 2008. "Local analysis of economic disparities in Italy: a spatial statistics approach," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 17(1), pages 85-112, February.
    20. Ryohei Nakamura, 2008. "Agglomeration Effects on Regional Economic Disparities: A Comparison between the UK and Japan," Urban Studies, Urban Studies Journal Limited, vol. 45(9), pages 1947-1971, August.
    21. Bournakis, Ioannis & Papanastassiou, Marina & Pitelis, Christos, 2015. "Regional Growth and Convergence in the UK: the Role of MNE Subsidiaries and Domestic Firms," MPRA Paper 68090, University Library of Munich, Germany.
    22. Steven Bond-Smith & Philip McCann & Les Oxley, 2018. "A regional model of endogenous growth without scale assumptions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(1), pages 5-35, January.
    23. Bernard Fingleton, 2005. "Towards applied geographical economics: modelling relative wage rates, incomes and prices for the regions of Great Britain," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2417-2428.
    24. Tian Qiu & John Hudson, 2010. "Private returns to education in urban China," Economic Change and Restructuring, Springer, vol. 43(2), pages 131-150, May.

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