IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa11p1192.html
   My bibliography  Save this paper

The Center-periphery Dilemma and the Issue of Equity in Regional Development

Author

Listed:
  • Daniel Shefer

    ()

Abstract

Different regions are endowed with production factors and characteristics that offer different opportunities for specialization, which can be transform to a regional comparative advantage. Many outlying regions (peripheral regions) suffer from a high rate of unemployment, low level of per capita income and net out migration. Outlying areas attract less investment in comparison to central regions. This is because of the low marginal productivity of factors of production in the outlying areas. In order to alleviate these hardships, inflicted on outlying regions, central governments often devise incentive and investment programs whose main objective is to reduce the gap between regions in the country and thus reduce regional inequalities. To attract high tech industries to outlaying regions is now in vogue. In reality we observe a distinct geographical distribution between centers of R&D and large mass production plants. This is due primarily to agglomeration economies and industrial cluster in central regions. Mass production, because of their needs for a large number of relatively unskilled labors gravitates towards the edge of Metropolitan regions and the outlying areas. But then their contribution to the wellbeing of the population in these regions is limited. Public/private investment in large scale facilities (or infrastructures), like highways and railways, Technological Incubators, R&D Centers, universities and hospitals, are among the projects proposed in order to facilitates economic growth in outlying areas. However investing in these projects is not necessarily the panacea for outlaying areas. Because of scarce resources it is paramount to select the most cost-effective program which will take into account the profile of the region under consideration, its natural endowments, and the administrative and political structure of the local government and its ability, together with the region's population, to turn the chosen program to a success. In this paper we critically discuss the spatial implications of selected public investment programs design to facilitate the development of peripheral regions.

Suggested Citation

  • Daniel Shefer, 2011. "The Center-periphery Dilemma and the Issue of Equity in Regional Development," ERSA conference papers ersa11p1192, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p1192
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01192.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 457-469, September.
    3. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    4. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    5. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    6. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    7. Fujita , Masahisa & Krugman, Paul, 2004. "The new economic geography: Past, present and the future," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 177-206.
    8. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, March.
    9. D Shefer, 1975. "A mathematical model for the location of industry in developing areas," Environment and Planning A, Pion Ltd, London, vol. 7(3), pages 251-262, March.
    10. Charlot, Sylvie & Gaigne, Carl & Robert-Nicoud, Frederic & Thisse, Jacques-Francois, 2006. "Agglomeration and welfare: The core-periphery model in the light of Bentham, Kaldor, and Rawls," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 325-347, January.
    11. Philip McCann & Daniel Shefer, 2003. "Location, agglomeration and infrastructure," Papers in Regional Science, Springer;Regional Science Association International, vol. 83(1), pages 177-196, October.
    12. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, June.
    13. F Bruinsma & P Rietveld, 1998. "The Accessibility of European Cities: Theoretical Framework and Comparison of Approaches," Environment and Planning A, , vol. 30(3), pages 499-521, March.
    14. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    15. D Shefer, 1975. "A Mathematical Model for the Location of Industry in Developing Areas," Environment and Planning A, , vol. 7(3), pages 251-262, May.
    16. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    17. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    18. Masahisa Fujita & Tomoya Mori, 2005. "Frontiers of the New Economic Geography," KIER Working Papers 604, Kyoto University, Institute of Economic Research.
    19. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    20. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 1-6, Summer.
    21. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    22. Daniel Graham & H. Kim, 2008. "An empirical analytical framework for agglomeration economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 267-289, June.
    23. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
    24. Rietveld, Piet, 1994. "Spatial economic impacts of transport infrastructure supply," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 329-341, July.
    25. Dapeng Hu & Masahisa Fujita, 2001. "Regional disparity in China 1985-1994: The effects of globalization and economic liberalization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 3-37.
    26. Fan, Shenggen & Kanbur, Ravi & Zhang, Xiaobo, 2008. "Regional Inequality In China: An Overview," Working Papers 51157, Cornell University, Department of Applied Economics and Management.
    27. Lynde, Catherine & Richmond, James, 1992. "The Role of Public Capital in Production," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 37-44, February.
    28. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
    29. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    30. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    31. Anders Malmberg & Dominic Power, 2005. "(How) Do (Firms in) Clusters Create Knowledge?," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 409-431.
    32. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    33. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1192. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.