Journal of International Development and Cooperation Volume 26 Issue 1-2
2020-03-01 発行

Effect of Trade Liberalization on Regional Income Inequality in an Endogenous Growth Model

He, Bing
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abstract
This paper constructs a footloose capital and endogenous growth model with agriculture, manufacturing, and service goods. We show that globalization increases, decreases, or does not change inequality in the regional income. This is because regional real income is defined as expenditure divided by price index of manufacturing and price of service good. Globalization leads to decreases inequalities in expenditure and price index of service while increases inequality in price of manufacturing goods. Thus, interregional minus intraregional knowledge spillovers in the service goods from manufacturing sector determines the sign of globalization on inequality in regional income.
description
The present work was supported through the Hiroshima University TAOYAKA Program for creating a flexible, enduring, peaceful society, funded by the Program for Leading Graduate Schools, Ministry of Education, Culture, Sports, Science and Technology.
subject
globalization
regional income inequality
service goods
foot loose capital
endogenous growth
rights
Copyright © 2020 Graduate School for International Development and Cooperation, Hiroshima University. 本紀要の一部・全部を問わず、著作権者(広島大学大学院国際協力研究科)の文章による許諾なしに複写・翻訳することを禁じます。