search query: @author Ortin, I. O. / total: 1
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| Author: | Desmet, K. Ortin, I. O. |
| Title: | Rational underdevelopment |
| Journal: | Scandinavian Journal of Economics
2007 : VOL. 109:1, p. 1-24 |
| Index terms: | development regional policy |
| Freeterms: | interregional transfers uneven development |
| Language: | eng |
| Abstract: | This article proposes a two-region two-sector model of uneven development, where technological change benefits either the lagging or the leading region. By raising wages, transfers reduce the chance of the backward region adopting a new technology and taking off and in this framework interregional transfers may lead to persistent underdevelopment. The model provides a rationale for cases where the same rich region subsidizes the same poor region on a continuous basis. |
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