Place-based V.S. space-neutral policies: the choice of regional coordinated development strategy

Yabin Pi and Yanzhen Wang

Applied Economics, 2024, vol. 56, issue 41, 4938-4951

Abstract: Through establishing a spatial equilibrium model including regional productivity differences, fiscal policy, and labour migration costs, this article discusses the effects and interaction of place-based policies and space-neutral policies. This article finds that there are differences in the impacts and mechanisms of the two types of policies on the spatial distribution of industry and labour force, regional income gap, and overall economic productivity and shows the application situation of the two types of policies and the interactions between them. Therefore, policymakers should choose a differentiated policy portfolio to narrow the regional income gap and improve the overall economic productivity.

Date: 2024
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DOI: 10.1080/00036846.2023.2227417

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