We propose a simple theoretical framework to study the impact of infrastructure on economic growth and regional unbalances. The framework presents in a unified way the main insights of NEG models with endogenous growth and free capital mobility. Two main results stand out. First, there is a trade off between growth and regional equality as improved infrastructure in developed ‘core’ regions fosters both agglomeration and growth, which are instead hampered by improved infrastructure in developing ‘peripheral’ regions. Second, better interregional connections may increase rather than decrease regional inequality as improved transport and communication infrastructure between core and peripheral regions fosters not only growth but also agglomeration. Nonetheless, increased agglomeration does not necessarily imply the impoverishment of peripheral regions as long as its positive impact on growth is strong enough.

Minerva G. A., Ottaviano G. I. P. (2009). Endogenous growth theories: agglomeration benefits and transportation costs. CHELTENHAM : Edward Elgar.

Endogenous growth theories: agglomeration benefits and transportation costs

MINERVA, GAETANO ALFREDO;OTTAVIANO, GIANMARCO IREO PAOLO
2009

Abstract

We propose a simple theoretical framework to study the impact of infrastructure on economic growth and regional unbalances. The framework presents in a unified way the main insights of NEG models with endogenous growth and free capital mobility. Two main results stand out. First, there is a trade off between growth and regional equality as improved infrastructure in developed ‘core’ regions fosters both agglomeration and growth, which are instead hampered by improved infrastructure in developing ‘peripheral’ regions. Second, better interregional connections may increase rather than decrease regional inequality as improved transport and communication infrastructure between core and peripheral regions fosters not only growth but also agglomeration. Nonetheless, increased agglomeration does not necessarily imply the impoverishment of peripheral regions as long as its positive impact on growth is strong enough.
2009
Handbook of Regional Growth and Development Theories
86
97
Minerva G. A., Ottaviano G. I. P. (2009). Endogenous growth theories: agglomeration benefits and transportation costs. CHELTENHAM : Edward Elgar.
Minerva G. A.; Ottaviano G. I. P.
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/75762
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 14
  • ???jsp.display-item.citation.isi??? 11
social impact