HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Journal articles

Public Policies, Regional Inequalities and Growth

Abstract : This paper 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. Conversely, an improvement in infrastructure facilitating transactions between regions has the reverse effect. In this sense, the paper highlights a trade-off between growth and the spatial distribution of economic activities. Contrary to transfers and traditional regional policies, it is shown that public policies that reduce the cost of innovation can attain the objectives of higher growth and more even spatial distribution of both income and economic activities. From that point of view, these policies seem preferable to the regional policies now implemented in Europe.
Document type :
Journal articles
Complete list of metadata

Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Tuesday, March 15, 2022 - 2:25:14 PM
Last modification on : Wednesday, March 16, 2022 - 3:28:24 AM


  • HAL Id : hal-03609271, version 1
  • SCIENCESPO : 2441/9288



Philippe Martin. Public Policies, Regional Inequalities and Growth. Journal of Public Economics, Elsevier, 1999, 73 (1), pp.85 - 105. ⟨hal-03609271⟩



Record views