Globalization, interregional and international inequalities

Dao Zhi Zeng, Laixun Zhao

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)

Abstract

This paper examines the impact of globalization on interregional and international inequalities in a setup of two countries and four regions, under international mobility of capital. In contrast to the literature, countries and regions are not required to be symmetric. We find that the aforementioned inequalities are closely related to the country size, region size, the degree of globalization (e.g., capital mobility and trade costs) and the level of local infrastructure. In particular, international trade behaves as a dispersion force when capital is internationally mobile for small countries such that reducing domestic transport costs lowers its interregional inequality, but the opposite can be true for large countries or when capital is internationally immobile.

Original languageEnglish
Pages (from-to)352-361
Number of pages10
JournalJournal of Urban Economics
Volume67
Issue number3
DOIs
Publication statusPublished - 2010 May

Keywords

  • Firm location
  • Globalization
  • Inequality
  • Infrastructure

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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