Regional Inequality in Europe: Evidence, Theory and Policy Implications

45 Pages Posted: 12 Apr 2018

See all articles by Simona Iammarino

Simona Iammarino

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Michael Storper

London School of Economics & Political Science (LSE)

Date Written: April 2018

Abstract

Regional economic divergence has become a threat to economic progress, social cohesion and political stability in Europe. Market processes and policies that are supposed to spread prosperity and opportunity are no longer sufficiently effective. The evidence points to the existence of several different modes of regional economic performance in Europe, responding to different development challenges and opportunities. Both mainstream and heterodox theories have gaps in their ability to explain the existence of these different regional trajectories and the weakness of the convergence processes among them. Therefore, a different approach is required, one that strengthens Europe's strongest regions but develops new approaches to promote opportunity in industrial declining and less-developed regions. There is ample new theory and evidence to support such an approach, which we have labelled 'place-sensitive distributed development policy'.

Keywords: economic divergence, European Union., inequality, place-sensitive development, regions

JEL Classification: R11, R12, R58

Suggested Citation

Iammarino, Simona and Rodríguez-Pose, Andrés and Storper, Michael, Regional Inequality in Europe: Evidence, Theory and Policy Implications (April 2018). CEPR Discussion Paper No. DP12841, Available at SSRN: https://ssrn.com/abstract=3159143

Simona Iammarino (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Michael Storper

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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