International Integration and Regional Inequalities: How Important is National Infrastructure?

20 Pages Posted: 27 Aug 2011

See all articles by Kristian Behrens

Kristian Behrens

University of Quebec at Montreal (UQAM) - Department of Economics

Date Written: September 2011

Abstract

I investigate how international trade and national infrastructure interact to affect the regional distribution of economic activity within a country involved in a process of economic integration. Building on a new economic geography model I show that, in general, there is no simple relationship between regional inequality and changes in trade costs. Whereas trade liberalization in developing countries with poor infrastructure and mostly autarkic regions may well exacerbate spatial inequalities, countries with better infrastructure and larger volumes of interregional trade may experience a more balanced spatial development through the redispersion of economic activity.

Suggested Citation

Behrens, Kristian, International Integration and Regional Inequalities: How Important is National Infrastructure? (September 2011). The Manchester School, Vol. 79, Issue 5, pp. 952-971, 2011, Available at SSRN: https://ssrn.com/abstract=1917162 or http://dx.doi.org/10.1111/j.1467-9957.2009.02151.x

Kristian Behrens (Contact Author)

University of Quebec at Montreal (UQAM) - Department of Economics ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada

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