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| Author: | Martin, P. |
| Title: | Public policies, regional inequalities and growth. |
| Journal: | Journal of Public Economics
1999 : JUL, VOL. 73:1, p. 85-123 |
| Index terms: | Public policy Infrastructures Innovation Spatial economics Income distribution Inequality Location of industry |
| Language: | eng |
| Abstract: | The author constructs a two-region endogenous growth model where industrial location and public infrastructures play a key role. The model analyzes the contribution of different types of public policies on growth, economic geography and spatial income distribution. It implies that an improvement in infrastructures that reduces transaction costs inside the poorest region decreases both the spatial concentration of industries, and the growth rate, and increases the income gap between the two regions. The paper highlights a trade-off between growth and the spatial distribution of economic activities. |
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