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This paper contributes to the growing debate on regional inequality and polarization in Russia. Using a consistent data series and applying a number of recently developed measures, it documents trends over the transition decade of...
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This paper contributes to the growing debate on regional inequality and polarization in Russia. Using a consistent data series and applying a number of recently developed measures, it documents trends over the transition decade of 1990-99. It shows that while inequality and polarization increased rapidly during 1991-96, the increases leveled off and even reversed in the late 1990s. Using a polarization index based on inequality decomposition, it is shown that the main dimensions of increasing polarization are not so much the "West East" or the "Ethnic Russian National Republics" divides, but factors such as export shares of regions or the relative sizes of their capitals. This provides a different perspective on the causes of regional inequality and polarization, and suggests a research and policy agenda somewhat different from that, which is prominent in the current debate.
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This paper examines whether the dominant sources of China's regional inequality have changed since the early 1980s. We adopt the decomposition method introduced by Tsui (1993) to facilitate comparisons with his results for 1982. T...
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This paper examines whether the dominant sources of China's regional inequality have changed since the early 1980s. We adopt the decomposition method introduced by Tsui (1993) to facilitate comparisons with his results for 1982. The decomposition analysis shows that the dominant sources of overall regional inequality in output have shifted from the intraprovincial to interprovincial inequality, from the rural-urban to intrarural inequality, and also from the disparity within the coast to between the coast and the interior. In the case of consumption, however, the intraprovincial inequality, the rural-urban inequality, and the disparity within the coast are the major factors of the overall regional inequality.
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This paper offers a comparative analysis of regions in the United States (US) and European Union (EU) countries before and during the aftermath of the global financial crisis. By using a regional taxonomy approaching a functional ...
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This paper offers a comparative analysis of regions in the United States (US) and European Union (EU) countries before and during the aftermath of the global financial crisis. By using a regional taxonomy approaching a functional definition, we can compare in a more meaningful way the regions in EU countries and the US. We use of a newly developed OECD functional typology of TL3 (Territorial Level 3) regions, which classifies regions into five categories: two are metropolitan regions (with a very large or large city) and three are regions with accessibility to cities of different sizes. Over the period 2000-17, we assess which types of regions have been most resilient or vulnerable to the effects of the crisis. To identify structural factors, we analyse the evolution of the contributions of regions to aggregate GDP and productivity growth. Some structural patterns emerge, which are then related to the evolution of regional inequalities between 2000 and 2017. Overall, we found that regional inequalities seem mainly related to structural factors rather than macroeconomic shocks, such as the global financial crisis.
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Regional inequalities represent a continuing development challenge in most countries. There is a presumption in development economics that decentralized fiscal arrangements would lead to ever-widening regional inequalities. This p...
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Regional inequalities represent a continuing development challenge in most countries. There is a presumption in development economics that decentralized fiscal arrangements would lead to ever-widening regional inequalities. This paper provides an empirical test of this hypothesis. We conclude that regional development policies have failed in almost all countries, federal and unitary alike. Still, federal countries do better in restraining regional inequalities, because of the greater political riskthese disparities pose for such countries. Our findings also suggest that countries experiencing divergence tend to focus on interventionist policies, while those experiencing convergence have taken a hands-off approach to regional development and instead focus on promoting an economic union by removing barriers to factor mobility and ensuring minimum standards in basic services across the country.
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We analyse binding constraints to productivity growth in the UK's regions outside London and the greater South East. These analyses challenge a number of common arguments about the UK's regional economic inequality problem. We fin...
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We analyse binding constraints to productivity growth in the UK's regions outside London and the greater South East. These analyses challenge a number of common arguments about the UK's regional economic inequality problem. We find little evidence consistent with the hypotheses (ⅰ) that low shares of university graduates remain the primary constraint on growth for the UK's regions; (ⅱ) that there is a generalised issue with access to finance for firms outside the South East; or (ⅲ) that low or falling regional migration rates are to blame for the persistence of the UK's regional economic inequalities. Instead, we find evidence consistent with (ⅰ) a specific relative shortage of STEM degrees; (ⅱ) binding transport infrastructure constraints within major non-London conurbations; (ⅲ) a failure of public innovation policy to support clusters beyond the South East, in particular through the regional distribution of public support for Research and Development (R&D); and (ⅳ) missed opportunities for higher internal mobility due to London's overheating housing market. We also find some suggestive evidence consistent with constraints on access to early-stage equity financing for high-growth-potential SMEs in certain regions.
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The UK has the widest regional inequalities among the advanced industrial economies. These regional inequalities are not new, but the persistence of the so-called North-South divide has become more prominent in the public eye. The...
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The UK has the widest regional inequalities among the advanced industrial economies. These regional inequalities are not new, but the persistence of the so-called North-South divide has become more prominent in the public eye. The post-Brexit landscape was aligned with the political rhetoric of 'levelling up', although this was only vaguely defined. While related to tackling regional inequalities, there has been much ambiguity around the various dimensions of 'levelling up', and the scale of its ambition. Moreover, the recent UK government White Paper provides little indication of which alternative paths (weaker) regions should take to address the country's long-standing inequalities. Indeed, the approach seems to implicitly accept the status quo, especially given that the minutiae detail of achieving 'levelling up' and recognition of interregional dynamics was largely missing. 'Levelling up' clearly invokes huge challenges, not least because the UK's regional inequalities are not only wide, but longstanding. The papers in this special issue highlight some of these challenges and some potential new policy directions. We offer this collection as useful food for thought for both academics and policymakers from across the political spectrum as we continue to tackle the issues surrounding uneven regional economic growth, development, and opportunity.
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This paper examines the changes in farm sector wealth from 1949 through 2002. The study uses Theil's entropy-based measure of inequality of farm wealth for 10 regions of the United States. The entropy measure is then used to decom...
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This paper examines the changes in farm sector wealth from 1949 through 2002. The study uses Theil's entropy-based measure of inequality of farm wealth for 10 regions of the United States. The entropy measure is then used to decompose U.S. inequalityinto within-region and between-region differences. Results show that for the period 1949 to 1993, relative to the number of farms per state, farm wealth in the United States became more equally distributed. However, beginning in 1994, findings suggest inequality in wealth may be increasing.
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The objective of this article is to analyze wage inequality among the 10 largest metropolitan regions in Brazil in the 1990s. We assess the extent to which worker characteristics (education, age, gender, race, position in the fami...
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The objective of this article is to analyze wage inequality among the 10 largest metropolitan regions in Brazil in the 1990s. We assess the extent to which worker characteristics (education, age, gender, race, position in the family) and job characteristics (occupational position, sector, experience) can explain wage inequality. The analysis is made both with regional-nominal and with regional-real wage data. In the second case regional price indexes are used to control for differences in cost of living among regions. Wage differentials in Brazil were slightly lowered when control variables were introduced, but the leftover inequality remained high. The results indicate that cost of living levels do have a role in explaining wage inequality in Brazil, but even after controlling for this factor, the remaining regional differentials are still important.
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This study investigates the effects of trade on income inequality across regions in the United States. Using both structural and price-based measures of regional trade involvement, we evaluate the effects of trade on inequality wi...
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This study investigates the effects of trade on income inequality across regions in the United States. Using both structural and price-based measures of regional trade involvement, we evaluate the effects of trade on inequality within and across states, the metropolitan and nonmetropolitan portions of the states, and the major census regions. Across all states and metropolitan and nonmetropolitan areas, we found that trade affects inequality primarily via import and export prices. In contrast to our expectations, however, a weaker dollar—more expensive imports and cheaper exports—is associated with the worsening of a state's position relative to other states and greater inequality within the state. Across the census regions, both our price and orientation measures had significant effects, but the direction of these effects varied by region. Whereas many regions benefited from cheaper imports, states in regions that are traditionally home to low-wage sectors, including the Southeast and South Central regions, were made relatively worse off by lower import prices and by greater orientation toward import-competing goods. Our findings reinforce notions about the uneven impacts of globalization and suggest that policy measures are needed to ensure that both the benefits and costs of involvement in international trade are shared across regions.
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Italy's regional inequalities are more substantial and persistent than any other European country. They pertain to fundamental economic indicators (income, productivity, employment) and to many relevant features of the socio-insti...
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Italy's regional inequalities are more substantial and persistent than any other European country. They pertain to fundamental economic indicators (income, productivity, employment) and to many relevant features of the socio-institutional environment (the quality of institutions, education attainments, government and bureaucratic efficiency, etc.). The 2008-13 crisis further exacerbated divergences, with a collapse of capital accumulation and unwelcome demographic shocks (brain drains, migrations, etc.). This paper contributes to this rich literature with a specific focus on the increase of 'within-south inequalities' and investigates some socioeconomic determinants and processes that can explain them. Through several original surveys and case studies, emphasis falls on the importance of human capital and cooperative networks that support firms in their capacity to exploit comparative advantages and opportunities for local development.
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