Regional Policy, Integration and the Location of Industry

Rikard Forslid

No 2003:7, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: Many countries devote a large part of their national budget to regional policy. This paper analyses the interaction of economic integration and some typical regional policies in a new economic geography model with three regions of different size. The policies analysed are the relocation of government activities, infrastructure investment and subsidies to the establishment of industry. It is shown how regional policy can easily be misdirected.

Keywords: agglomeration; economic geography; regional policy (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 R12 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2003-06-01
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2003_0007

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