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Spatial inequality, regional growth, and economic geography

Author

Listed:
  • Jenny Chan

    (Bank of England)

  • Sebastian Ellingsen

    (University of Bristol)

  • Helen Simpson

    (University of Bristol)

Abstract

This paper explores the patterns of spatial income disparities within countries throughout the 20th Century. Following World War II, regional income gaps initially narrowed; however, the rate of convergence has slowed in recent decades, with regional divergence evident in some countries. Despite narrowing income gaps, the incomplete nature of regional income convergence has led to persistent income gaps across the regions in our sample. We synthesise recent contributions seeking to explain these patterns, with an emphasis on insights from quantitative economic geography and macroeconomics.

Suggested Citation

  • Jenny Chan & Sebastian Ellingsen & Helen Simpson, 2025. "Spatial inequality, regional growth, and economic geography," Bank of England Staff Working Paper series 1152, Bank of England.
    • Handle: RePEc:boe:boeewp:023274
    as

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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2025/spatial-inequality-regional-growth-and-economic-geography.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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