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

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    • "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. "
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    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.
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    • "If poor cities are inherently less productive (perhaps due to geographic factors), then investing in such areas may yield a relatively low rate of return relative to investing in areas with better fundamentals. Conversely, standard convergence arguments might predict that the marginal returns to investment in such areas may be high (Barro and Sali-i-Martin, 1991). "
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    ABSTRACT: China's rapid economic growth has been fueled by industrialization and urbanization. Given its export focus, this industrialization was spatially concentrated in the coastal eastern cities. Over the last decade, a spatial transformation has taken place leading to a deindustrialization of the rich coastal cities and sharp industrial growth in the inland cities. This survey examines recent work that studies the economic geography of industrial production, pollution, and quality of life in China's cities. We focus on the interaction between firms, local governments, and the central government that together determine the new economic geography of industry and pollution within China.
    Journal of Economic Surveys 03/2014; 28(4). DOI:10.1111/joes.12063 · 1.33 Impact Factor
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    • "An additional factor of an incomplete information at the management of the regional development is need to using of the assessment models and the analyses strategies of the development on base a simulation and forecasting of an influence of any different threats. The theoretical bases of a development for the models of the balanced SED are been reflected in many works of some national and international authors (Barro and Sala-i-Martin, 1991; Cuadrado-Roura et al., 2000; Lukyanenko, 2004; Ponomarenko et al., 2004; Geyets et al., 2006; Lopez-Rodriguez, 2008; Lychkina, 2009; Khalil and Wajid, 2013; Sbaouelgi and Ghazi, 2013). In the following papers (Lukyanenko, 2004; Khalil and Wajid, 2013) are considered those simulation methods of the mechanisms for budget regulation on different hierarchical levels such as the econometric methods, the casual and non-casual methods, and panel data. "
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    ABSTRACT: Purpose – The main purpose of this study is a modelling of assessment processes for irregularity and cyclical of dynamic regions development, which used to reduce inter-regional contrasts, disruptions and variations in a socio-economic development on base an effective regional financial policy. Design/methodology/approach – The conceptual provisions and model basis of an estimate of irregular and cyclic dynamics of the socio-economic development of any regions, which are functioning in some conditions of a high level of an uncertainty the external environment. At the same time, this external environment has a significant influence to increase of risks and losses in design making. Findings – The model basis presents as a complex of some interconnected modules: the module for estimate and analysis of the irregularity of the socio-economic development any regions; the module to form some management scenarios of the socio-economic development any regions. Targeted direction of the first module is an estimate of an interregional socio-economic differentiation, a detection of some disproportions in the regions development. Description of the second module is a forming of any management scenarios of the socio-economic development any regions which to direct to decrease of a level of the interregional differentiation while ensuring of a sustainable economic growth. Originality/value – Was formed the models complex of a differentiation of the develop regions which can provide a possibility for estimation of some sustainability for the cluster formations regions by a level of the socio-economic development and to make an analysis of their structural dynamics. Also was been developed a complex of a methodical ensuring for a system forecasting of cyclical dynamic of an economic territories growth. The main blocks of this complex are the forecasting of macroeconomic indicators considering some indicators of the cyclical development; a detection and analysis of any cyclical fluctuations indicators of the region development; a forecasting of some crisis and catastrophes in the socio-economic region development. Was been developed the model of an alignment of the socio-economic disproportions on the interregional level on base the fiscal or tax-budget state policy. For forecasting of some consequences change of fiscal policy can be used some scenario approach which realization is doing on base an imitation simulation.
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