EconPapers    
Economics at your fingertips  
 

Structural Change and Regional Convergence: The Case of Declining Transport Costs

Trevor Tombe ()

Working Papers from Wilfrid Laurier University, Department of Economics

Abstract: Regional income inequality within countries is an important contributor to global inequality. I investigate its relationship to economic growth using the US experience since 1880. I modify a multi-sector general equilibrium growth model and highlight two important forces: (1) structural change, which disproportionately benefit poor agricultural regions; and (2) transport cost reductions, which shrinks regional price and wage differences. Structural change contributes to Southern growth but is offset in the Midwest by transport cost reductions. The Midwest case is of greater relevance for developing countries with high transport costs, and suggests growth may not significantly reduce global income inequality.

Keywords: Regional Convergence; Dual-Economy Models; Transportation Costs (search for similar items in EconPapers)
JEL-codes: O11 R11 (search for similar items in EconPapers)
Pages: 28
Date: 2012, Revised 2012
New Economics Papers: this item is included in nep-geo, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://dl.dropbox.com/u/6874356/tombe11.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://dl.dropbox.com/u/6874356/tombe11.pdf [301 Moved Permanently]--> https://dl.dropbox.com/u/6874356/tombe11.pdf)

Related works:
Working Paper: Structural change and regional convergence: the case of declining transport costs (2011) Downloads
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:wlu:wpaper:tt0061

Access Statistics for this paper

More papers in Working Papers from Wilfrid Laurier University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Andrei Kovacsik ().

 
Page updated 2020-01-21
Handle: RePEc:wlu:wpaper:tt0061