Abstract/Details

ANALYSIS OF REGIONAL GROWTH: A STUDY OF EFFICIENCY/EQUALITY RELATIONS


1987 1987

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Abstract (summary)

The research is concerned with the process of regional growth. The purpose is two-fold: (i) to analyze the relations between national aggregate efficiency and interregional income equality in the regional policy decision-making process; and (ii) to explain the historic change in the levels of interregional income inequality in the United States. The study gives particular attention to two different political-economic systems: a planned economy and a free market system.

The analysis of regional growth in a planned economy shows the relations between two regional policy goals (i.e., efficiency and equality) through both static and dynamic analyses. The important policy variable adopted here is the regional allocation of investment. This study departs from the existing literature by dropping faulty assumptions from neoclassical regional economic growth theory such as: (i) constant returns to scale; (ii) identical production functions; and (iii) a two-region economy.

The static analysis presents various relations between efficiency and equality such as trade-off, non-trade-off and mixed-relations. The dynamic analysis concludes that the two goals conflict in most cases, even though there might be some fluctuation on the short-term planning horizon.

The analysis of regional growth in a free market system deals with the following question: Why do regional income inequalities decrease (or increase) as the economy develops? The study shows several interesting results. First, regional income inequalities in the U.S. have been decreasing over time except for the short-time effect of the Great Depression. This finding is quite different from Myrdal's expectation and Williamson's inverted-U hypothesis.

Second, neoclassical growth theory as a theoretical rationale for interregional income convergence has a limited predictive accuracy. Both empirical and theoretical analyses indicate that interregional factor flows neither ensure full convergence nor full divergence.

Finally, it has been found that the convergence toward regional equality is caused by the long-term geographic dispersion of factors such as wage income, property income, transfer payments, the urbanization rate, the employment structure and the labor participation rate. It is concluded that the convergence results from intraregional, rather than interregional, allocation of resources.

Indexing (details)


Subject
Urban planning;
Area planning & development
Classification
0999: Urban planning
0999: Area planning & development
Identifier / keyword
Social sciences
Title
ANALYSIS OF REGIONAL GROWTH: A STUDY OF EFFICIENCY/EQUALITY RELATIONS
Author
PARK, BYUNGHO
Number of pages
186
Publication year
1987
Degree date
1987
School code
0175
Source
DAI-A 48/03, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
University/institution
University of Pennsylvania
University location
United States -- Pennsylvania
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
8714106
ProQuest document ID
303590926
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/303590926
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