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Optimal Allocation Of Investment And Regional Disparities

Author

Listed:
  • Alexiadis Stilianos

    (Ministry of Rural Development and Foods, Department of Agricultural Policy & Documentation, Division of Agricultural Statistics)

  • Christos Ap. LADIAS

    (Department of Regional Economic Development, University of Central Greece)

Abstract
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.

Suggested Citation

  • Alexiadis Stilianos & Christos Ap. LADIAS, 2011. "Optimal Allocation Of Investment And Regional Disparities," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 45-59, December.
    • Handle: RePEc:hrs:journl:v:iii:y:2011:i:2:p:45-59
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    File URL: http://www.rsijournal.eu/ARTICLES/December_2011/45-59.pdf
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    References listed on IDEAS

    as
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    12. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    13. Alexiadis Stilianos & Christos Ap. LADIAS & Polo Antoneta, 2010. "Converging And Diverging Regions In The Eu: Implications For Regional Policy," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 55-70, December.
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    15. repec:hrs:journl:v:2:y:2010:i:1:p:41-52 is not listed on IDEAS
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    9. Kavvadia, Helen, 2012. "Towards Europe 2020 out of the economic crisis: is the Project Bond Initiative a means to financial stability and integration?," MPRA Paper 53696, University Library of Munich, Germany.
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    More about this item

    Keywords

    Regional Allocation of Investment; Regional Inequalities; Regional Policy;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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