Do geographical agglomeration, growth and equity conflict?

Vincent Dupont

Papers in Regional Science, 2007, vol. 86, issue 2, 193-213

Abstract: Abstract. The paper analyses the impact of economic integration on individual inequality and regional disparity in a model of endogenous growth and geography. Assuming localised learning externalities and perfect mobility of capital, trade integration of economies yields a trade‐off for the policy maker because it increases growth and decreases inequality on the one hand, but geographical agglomeration strengthens on the other. However, a policy that aims to improve trade in ideas does not face this trade‐off. Abstract. El artículo analiza el impacto de la integración económica en la inecualidad individual y la disparidad regional en un modelo de crecimiento endógeno y geografía. Asumiendo externalidades de aprendizaje localizadas y una perfecta movilidad de capitales, la integración de comercio de economías crea un trade‐off para el formulador de políticas porque por un lado aumenta el crecimiento y disminuye la inecualidad, pero por otro aumenta la aglomeración geográfica. Sin embargo, una política que trate de mejorar un intercambio de ideas no se enfrenta a este trade‐off.

Date: 2007
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Citations: View citations in EconPapers (16)

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https://doi.org/10.1111/j.1435-5957.2007.00118.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:86:y:2007:i:2:p:193-213

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