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Public Sector Size and Peripherality


  • Rhydian James
  • Peter Midmore
  • Dennis Thomas


This paper develops a model that shows how a country can endogenously become differentiated into a private-sector dominated ‘core’ region and a public-sector dominated ‘periphery’. A large public sector is closely associated with peripheral economies, although it is unclear to what extent it is a cause of peripherality rather than a symptom. The paper takes a minimum public sector size, dependent on each region's population, to present a public sector increasing in volume relative to falling population. This modelling activity is an attempt to quantify empirical and quantitative observations on the size of regional public sectors in terms of the new economic geography, and demonstrates that under various conditions a relatively large public sector can be beneficial for a peripheral region. RÉSUMÉ La pr#xe9;sente communication d#xe9;veloppe un modèle montrant la façon dont un pays peut devenir, de façon endogène, diff#xe9;renci#xe9; dans une r#xe9;gion essentielle domin#xe9;e par le secteur priv#xe9;, et une « p#xe9;riph#xe9;rie » domin#xe9;e par le secteur public. Il existe des rapports #xe9;troits entre un secteur public important et des #xe9;conomies p#xe9;riph#xe9;riques, bien que l'on ne puisse d#xe9;terminer dans quelle mesure il s'agit d'une cause de p#xe9;riph#xe9;ricit#xe9; plutôt que d'un symptôme. Cette communication utilise une taille minimale de secteur public, en fonction de la population de chaque r#xe9;gion, pour pr#xe9;senter un secteur public augmentant en volume relativement à la diminution de la population. Cette activit#xe9; de mod#xe9;lisation est une tentative de quantification d'observations empiriques et quantitatives sur la taille des secteurs publics r#xe9;gionaux sur le plan de la nouvelle g#xe9;ographie #xe9;conomique, et d#xe9;montre que, dans certaines conditions, un secteur public d'envergure relativement importante peut être b#xe9;n#xe9;fique pour une r#xe9;gion p#xe9;riph#xe9;rique. EXTRACTO Este estudio desarrolla un modelo que muestra cómo un pa#xed;s puede llegar a diferenciarse endógenamente como una región ‘central’ dominada por el sector privado y una ‘ periferia’ dominada por el sector público. Un sector público amplio se asocia estrechamente con econom#xed;as perif#xe9;ricas, aunque no está claro hasta qu#xe9; punto es una causa de la periferalidad en lugar de un s#xed;ntoma. El estudio toma un tamaño m#xed;nimo de sector público, dependiente de la población de cada región, para presentar un sector público que aumenta en volumen en relación con una población decreciente. Esta actividad de modelación es un intento de cuantificar observaciones emp#xed;ricas y cuantitativas sobre el tamaño de los sectores públicos regionales en t#xe9;rminos de la nueva geograf#xed;a económica, y demuestra que bajo varias condiciones, un sector público relativamente grande puede ser beneficioso para una región perif#xe9;rica. 公共部门规模和边缘性 摘要 : 本文提出了一种新的模型 , 使一个国家内生分化成私营部门主导的‘核心’区域和公共部门主导的‘外围’区域 。大量公共部门都与外围经济紧密相连 , 尽管尚不清楚它们在多大程度上决定了是边缘化还是虚拟化。本文参照各个地区的人 口数目相应地采用最小的公共部门规模 , 证明在人口下降时公共部门体积增加。这一建模过程是为了尝试使用新的经济地理学 方法对区域公共部门规模的经验和定量观察结果进行量化。结果显示在多种不同情况 下,相对大的公共部门对外围区域有益。

Suggested Citation

  • Rhydian James & Peter Midmore & Dennis Thomas, 2012. "Public Sector Size and Peripherality," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(4), pages 447-460, December.
  • Handle: RePEc:taf:specan:v:7:y:2012:i:4:p:447-460
    DOI: 10.1080/17421772.2012.722666

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    References listed on IDEAS

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