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Structural Reforms and Regional Convergence

Author

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  • Che, Natasha Xingyuan
  • Spilimbergo, Antonio

Abstract

Which structural reforms affect the speed the regional convergence within a country? We found that domestic financial development, trade/current account openness, better institutional infrastructure, and selected labor market reforms facilitate regional convergence. However, these reforms have mixed effects on the growth of regions closer to the country’s development frontier. We also document that regional income disparity and average income are inversely correlated across countries so that speeding up regional convergence increases national income. We also present a theoretical model to discuss these results.

Suggested Citation

  • Che, Natasha Xingyuan & Spilimbergo, Antonio, 2012. "Structural Reforms and Regional Convergence," CEPR Discussion Papers 8951, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8951
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    Cited by:

    1. Nicola Gennaioli & Rafael La Porta & Florencio Lopez De Silanes & Andrei Shleifer, 2014. "Growth in regions," Journal of Economic Growth, Springer, vol. 19(3), pages 259-309, September.
      • Nicola Gennaioli & Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer, "undated". "Growth in Regions," Working Paper 73436, Harvard University OpenScholar.
      • Nicola Gennaioli & Rafael La Porta & Florencio Lopez de Silanes & Andrei Shleifer, 2013. "Growth in Regions," NBER Working Papers 18937, National Bureau of Economic Research, Inc.
    2. Peter Huber, 2013. "Labour Market Institutions and Regional Unemployment Disparities," WWWforEurope Working Papers series 29, WWWforEurope.
    3. Marco Percoco, 2016. "Labour Market Institutions: Sensitivity to the Cycle and Impact of the Crisis in European Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 375-385, July.
    4. repec:wfo:wstudy:46890 is not listed on IDEAS
    5. Sabine D’Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2017. "Impact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters," Working Papers 86, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    6. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
    7. repec:eee:rujoec:v:3:y:2017:i:4:p:411-424 is not listed on IDEAS
    8. Sabine D'Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2016. "Impact of Structural Reforms on Regional Growth: Distance to the Frontier Matters," SERC Discussion Papers 0203, Spatial Economics Research Centre, LSE.
    9. Giuseppe Albanese, 2014. "L’evoluzione delle politiche di coesione: dibattito teorico e prospettive," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2014(1), pages 5-24.
    10. Carol S. Leonard & Zafar Nazarov & Elena S. Vakulenko, 2016. "The impact of sub-national institutions," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 421-446, July.

    More about this item

    Keywords

    economic growth; income inequality; regional convergence; structural reforms;

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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