OPTIMAL ALLOCATION OF INVESTMENT AND REGIONAL DISPARITIES

A model of optimal allocation of investment across regions is developed. It is shown that the optimality conditions may lead to increasing inequalities at the spatial level. Introducing an element of endogenous innovation dualistic situation emerges. An empirical analysis, using data for the NUTS-2 regions of the European Union seems to confirm this argument.

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Year of publication:	2011
Authors:	Ladias, Christos Ap. ; Stilianos, Alexiadis
Published in:	Regional Science Inquiry. - Hellenic Association of Regional Scientists, ISSN 1791-7735. - Vol. III.2011, 2, p. 45-59
Publisher:	Hellenic Association of Regional Scientists
Subject:	Regional Allocation of Investment \| Regional Inequalities \| Regional Policy

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Extent:	application/pdf
Type of publication:	Article
Classification:	C21 - Cross-Sectional Models; Spatial Models ; O18 - Regional, Urban, and Rural Analyses ; R11 - Regional Economic Activity: Growth, Development, and Changes
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010652491