Convergence Across U.S. States and Regions

Brookings Papers on Economic Activity (Impact Factor: 3.41). 01/1991; 22(1):107-182. DOI: 10.2307/2534639
Source: RePEc


[eng] Transportation costs and monopoly location in presence of regional disparities. . This article aims at analysing the impact of the level of transportation costs on the location choice of a monopolist. We consider two asymmetric regions. The heterogeneity of space lies in both regional incomes and population sizes: the first region is endowed with wide income spreads allocated among few consumers whereas the second one is highly populated however not as wealthy. Among the results, we show that a low transportation costs induces the firm to exploit size effects through locating in the most populated region. Moreover, a small transport cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. [fre] Cet article d�veloppe une statique comparative de l'impact de diff�rents sc�narios d'investissement (projet d'infrastructure conduisant � une baisse mod�r�e ou � une forte baisse du co�t de transport inter-r�gional) sur le choix de localisation d'une entreprise en situation de monopole, au sein d'un espace int�gr� compos� de deux r�gions aux populations et revenus h�t�rog�nes. La premi�re r�gion, faiblement peupl�e, pr�sente de fortes disparit�s de revenus, tandis que la seconde, plus homog�ne en termes de revenu, repr�sente un march� potentiel plus �tendu. On montre que l'h�t�rog�n�it� des revenus constitue la force dominante du mod�le lorsque le sc�nario d'investissement privil�gi� par les politiques publiques conduit � des gains substantiels du point de vue du co�t de transport entre les deux r�gions. L'effet de richesse, lorsqu'il est associ� � une forte disparit� des revenus, n'incite pas l'entreprise � exploiter son pouvoir de march� au d�triment de la r�gion l

52 Reads
  • Source
    • "The idea of economic convergence is derived from neo-classical growth models (Solow, [28]) in which, under the simple hypothesis of constant returns to scale, perfect competition and homogeneous agents it is shown that all the economies with similar characteristics converge to a long-run level of per-capita income. Barro-type regressions (Barro and Sala-i-martin, [5]), in which regional growth is explained by the initial income level, have been used to search evidences of income convergence 3 . Using the notion of conditional convergence, the model is generally augmented with some control variables in order to account for heterogeneity in structural characteristics. "
  • Source
    • "En las últimas décadas las investigaciones empíricas sobre el crecimiento económico han ganado interés ya que se han centrado, por un lado, en identificar los factores determinantes de las tasas de crecimiento económico y, por el otro, en probar la hipótesis de convergencia. Aunque no se abordará el tema de convergencia al estado estacionario, la referencia a investigaciones como la de William Baumol (1986), Robert Barro (1991), Xavier Sala-i-Martin (1991, 1992) y Jong-Wha Lee (1994), que han precisado que los países convergen a su nivel de estado estacionario de ingreso per cápita a tasas lentas de 2 a 3% por año resulta útil en la medida que los autores se valieron del análisis de datos panel para estimar el modelo de Solow ampliado, metodología a utilizar en la presente investigación. "
    [Show description] [Hide description]
    DESCRIPTION: This paper analyzes the impact that social public policies might have had on the economic growth of Argentina, Brazil, Colombia, Chile, Mexico, and Venezuela during the period of 1980 to 2010. It also examines the hypothesis of convergence in these countries. To accomplish this goal, it uses panel data analysis on data extracted from the CEPAL and the Penn World Table databases. Empirical results are consistent with those found by Barro and Lee (1991), Caselli, Esquivel, and Lefort (1996), and Barro and Sala-i-Martin (2004). In other words, it was found that social public policies have positively influenced growth in these economies. Particularly, it was found that there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; meanwhile there are other non-observed variables that might be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their steady states.
  • Source
    • "Investment is a growth determinant that is directly implied by the Solow growth model and the theoretical hypothesis is supported by various empirical cross-country studies that show a robust positive impact of investment on growth (Barro, 1991; Sachs and Warner, 1997). There are researches arguing that the significance of investment may not be as strong as it was first thought. "
    [Show abstract] [Hide abstract]
    ABSTRACT: Research in regional growth analysis has acknowledged the importance of spatial effects as part of the analysis. Recently, there were several attempts to apply regional growth regression in Indonesia that raise the possible necessity to implement spatial effects in the growth regression. However, as the largest archipelagic country in the world, Indonesia has distinctive features in relation to spatial analysis that can hamper the application of spatial effects. The aim of this study is to investigate the necessity and the issues in applying spatial effects on Indonesia's provincial income per capita growth by introducing the spatial lag and error into the growth regression. The exercise shows the existing problems in applying spatial effects on Indonesia's regional growth regression. Moreover, the conclusion of the growth regression is hardly changed by the inclusion of spatial effects. ACKNOWLEDGEMENTS: The author would like to thank Joelle Vandermensbrugghe, Rebecca Cassells and the anonymous referees for helpful comments on an earlier draft.
Show more


52 Reads
Available from