Regional redistribution and growth

Joan Rosselló Villalonga

Investigaciones Economicas, 2003, vol. 27, issue 2, 369-392

Abstract: In the last twenty years, Interregional Transfers in the form of public infrastructures have been used as an instrument to reduce regional disparities in output levels. In this paper we provide theoretical foundation on the effects of such transfers on both regional output and regional welfare disparities. We conduct our analysis in a multiregional framework considering a model with endogenous growth. Our results show that when increasing redistribution a reduction in regional output disparities might be compatible with a loss in total welfare, even in the recipient. This result is due to the fact that such transfers force a reallocation of factors of production towards those regions with lower productivities and this has a negative effect on the growth rate of the economy.

Keywords: Interregional transfers; endogenous growth; public investment (search for similar items in EconPapers)
JEL-codes: H54 H73 R11 R53 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.fundacionsepi.es/investigacion/revista ... /May2003/v27i2a6.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iec:inveco:v:27:y:2003:i:2:p:369-392

Ordering information: This journal article can be ordered from
https://www.fundacio ... tas/presentacion.asp

Access Statistics for this article

Investigaciones Economicas is currently edited by Antonio Cabrales and Pedro Mira

More articles in Investigaciones Economicas from Fundación SEPI Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain.
Bibliographic data for series maintained by Isabel Sánchez-Seco ( this e-mail address is bad, please contact ).