Spatial inequalities in an era of modern reindustrialization

Roberta Capello and Silvia Cerisola

Chapter 1 in Spatial Inequalities and Wellbeing, 2024, pp 16-32 from Edward Elgar Publishing

Abstract: Strong support for the relaunch of productivity through a process of modern reindustrialization has characterized the position of the EU institutions in recent years. Despite such significant political interest, however, the evidence on this topic is extremely scant and the potential impact of reindustrialization on balanced growth among different areas and consequently on spatial disparities has not yet been explored. The present chapter aims at addressing these topics at the regional level and at contributing to filling the existing gaps in the literature through the study of the relationship between reindustrialization and productivity growth, with a special focus on the role of modernization in the reindustrializing sectors. Thanks to a simulation on differentiated reindustrialization strategies, interesting results are obtained. A simple reindustrialization strategy leads to a decrease in total disparities, driven by a reduction in between-country imbalances. Instead, a modern reindustrialization strategy is also accompanied by challenges in terms of within-country inequalities. Policy suggestions for an equitable and modern regional reindustrialization conclude the work.

Keywords: Economics and Finance; Geography; Politics and Public Policy Sociology and Social Policy; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2024
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