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Geography and the Inclusive Economy: A Regional Perspective




The paper expands on the regional geographic dimensions of the inclusive economy outlined in Treasury Working Paper 01/15 Towards an Inclusive Economy. It discusses the extent to which differences in economic and social indicators across regions might constitute problems, illustrates the importance of understanding empirical patterns of deprivation in New Zealand and outlines some key policy directions. In some instances, differences in indicators of well-being between regions indicate positive dynamics, for example cities generate higher productivity and wages as well as consumption benefits. In other instances, regional differences may be problematic, for example when spillovers perpetuate social problems or people become stuck in declining areas. Auckland is important - it contains 36% of all deprived neighbourhoods in New Zealand, and the proportion is growing over time. Rural deprived regions, particularly Northland and Gisborne with 24% of their population living in deprived neighbourhoods, also warrant attention if people are stuck or community functioning is impaired. There is a high preponderance of Maori and Pacific peoples in both urban and rural deprived neighbourhoods. Avenues for policy exploration include education, enhancing connectedness, and ensuring that people are free to move to job-rich areas. Intervention in local economies needs to be selective and evaluation of all policy intervention is important. Policies that are spatially neutral may have unintended spatial effects and this also requires further attention.

Suggested Citation

  • The Treasury, 2001. "Geography and the Inclusive Economy: A Regional Perspective," Treasury Working Paper Series 01/17, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:01/17

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    References listed on IDEAS

    1. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    2. David C Mare & Peter Mawson & Jason Timmins, 2001. "Deprivation in New Zealand: Regional Patterns and Changes," Treasury Working Paper Series 01/09, New Zealand Treasury.
    3. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    4. Suzi Kerr & Jason Timmins, 2000. "Economic Geography and Spatial Statistics: Theory and Empirics of New Zealand Regions," Treasury Working Paper Series 00/11, New Zealand Treasury.
    5. Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
    6. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    7. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    8. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
    9. Sarah Box, 2000. "Economic Geography - Key Concepts," Treasury Working Paper Series 00/12, New Zealand Treasury.
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    More about this item


    economic geography; spatial distribution; deprivation; regions; regional policy;

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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