Spatial inequality between developed and developing economies

Lili Tan, Dao-Zhi Zeng

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

Bearing in mind that developing countries have less capital and less advanced technologies, this paper theoretically investigates the joint impact of two first-nature forces, Ricardian and Heckscher-Ohlin advantages and the second-nature force on spatial income inequality. We establish a new economic geography model without a traditional sector so that the wages are not equalized. By combining these three kinds of trade forces, we show how spatial income inequality changes with economic integration. Four evolution patterns are obtained which are consistent with diverse empirical results in the literature.

Original languageEnglish
Pages (from-to)229-248
Number of pages20
JournalPapers in Regional Science
Volume93
Issue number2
DOIs
Publication statusPublished - 2014 Jan 1

Keywords

  • Globalization
  • New economic geography
  • Spatial inequality

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Environmental Science (miscellaneous)

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