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Regional inequality: An analysis under the core–peripheral model

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  • Marcus Gumpert

Abstract

Desmet, Gumpert, and Ortίn have analyzed regional development using the Ricardian model or the Heckscher–Ohlin theorem. However, aspects such as consideration of combined wages, substitution elasticities, marginal costs, fixed costs, and number of companies were completely ignored. This study investigates the underdevelopment of regions in light of Krugman`s core–peripheral model. The extension of the model is intended to analyze the aspects that have so far been ignored and their influence on the benefits of the two regions. The following aspects characterize the model. Two regions with two sectors are considered for the model. The regions are characterized by different technological equipment. The first region is industrial. The second region has an agricultural character. When a new technology is available, both regions can benefit under certain conditions. The financial transfers lead to a convergence of wages.

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  • Marcus Gumpert, 2019. "Regional inequality: An analysis under the core–peripheral model," Growth and Change, Wiley Blackwell, vol. 50(2), pages 775-802, June.
    • Handle: RePEc:bla:growch:v:50:y:2019:i:2:p:775-802
    DOI: 10.1111/grow.12288
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    Cited by:

    1. Marcus Gumpert, 2020. "Regional Inequality: An Analysis under an Extended Core-Peripheral Model," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 157-186, March.
    2. Marcus Gumpert, 2020. "Underdevelopment through Productivity Improvement Measures in an Advanced Region," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 865-872.

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