Bridging the economic divide within nations : a scorecard on the performance of regional development policies in reducing regional income disparities

摘要: Regional inequalities represent a continuing development challenge in most countries, especially those with large geographic areas. Globalization heightens these challenges because it places premium on skills: since rich regions typically also have better educated and skilled labor, the gulf between poor widens. While central governments unitary states are relatively unconstrained their choice of policies for reducing regional disparities, federation division powers curtails federal flexibility policy choice. Thus disparities can serious threats, state's inability to deal such inequities creating potential disunity and, extreme cases, disintegration. Inequalities beyond threshold may lead calls separation by both richest poorest regions. consider manifestation injustice, view union as holding them back drive toward prosperity. Under circumstances, there is presumption economics that decentralized fiscal arrangements would ever widening inequalities. The authors provide an empirical test this hypothesis. conclude failed almost all alike. Among 10 countries high or substantial income inequality, only one (Thailand) has experienced convergence incomes. Still, do restraining inequalities, greater political risk pose countries. classify degree incomes: a) Countries experiencing divergence - Brazil, China, India, Indonesia, Philippines, Romania, Russian Federation, Sri Lanka, Vietnam. b) no significant change variation Canada Mexico. c) Chile, Pakistan, Thailand, United States, Uzbekistan. outcomes observed revealing look at impact policies. tend focus interventionist policies, taken hands-off approach instead focused promoting economic removing barriers factor mobility ensuring minimum standards basic services across nation. In example, incomes largely attributable liberalizing economy distortions so could discover own comparative advantage. Pakistan States mobility. Paradoxically, level playing field helps disadvantaged more than paternalistic protectionist