Regional Disparities, Growth, and Inclusiveness

Holger Floerkemeier and Nikola Spatafora
Authors registered in the RePEc Author Service: Anthony J. Venables

No 2021/038, IMF Working Papers from International Monetary Fund

Abstract: We discuss regional disparities in economic performance and living standards. We first set out some key facts, and provide a conceptual framework to help analyze whether such disparities are efficient, or instead reflect market and/or policy failures. We examine whether policy attempts to reduce regional disparities necessarily involve a trade-off between equity and efficiency. We then investigate whether policymakers should focus on boosting the economic performance of lagging regions—or, conversely, accept the presence of regional disparities, and instead assist households in lagging regions through transfer payments, investments in education, health, and other basic services, and by facilitating out-migration.

Keywords: Regional Disparities; Place-Based Policies; Inclusive Growth.; WP; market forces; agglomeration economy; supplier firm; wage competitiveness; community development; earnings differential; wage difference (search for similar items in EconPapers)
Pages: 35
Date: 2021-02-12
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (8)

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