IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v44y2010i9p1117-1129.html
   My bibliography  Save this article

Does a Federal Country Need Federal Transfers When It Has Labour Mobility?

Author

Listed:
  • Tiago Neves Sequeira
  • Alexandra Ferreira Lopes

Abstract

Sequeira T. N. and Lopes A. F. Does a federal country need federal transfers when it has labour mobility?, Regional Studies. This work empirically tests optimum currency area theory for members of a given monetary union (the United States). The United States is recognized as a country where labour mobility between states is high. This paper jointly assesses the consequences of having federal transfers and labour mobility in terms of the states' cyclical output. It is concluded that federal transfers undoubtedly contribute to increase cyclical output. However, out-migration may increase or decrease cyclical output, depending on certain conditions. As federal transfers proved to be much more important than migration, the answer to the question in the paper's title is 'yes'. [image omitted] Sequeira T. N. et Lopes A. F. Un pays federal, a-t-il besoin des transferts federaux quand il est deja dote de la mobilite du travail?, Regional Studies. Cet article cherche a tester empiriquement la theorie des zones monetaires optimales pour ce qui est des pays-membres d'une union monetaire donnee (a savoir, les Etats-Unis). On considere les Etats-Unis comme un pays ou la mobilite interregionale du travail est importante. Cet article cherche donc a evaluer les consequences des transferts federaux et de la mobilite du travail du point de vue de la production cyclique des etats. Cela amene a la conclusion suivante: les transferts federaux contribuent indubitablement a une hausse de la production cyclique. Toujours est-il que le solde migratoire negatif pourrait accroitre ou decroitre la production cyclique, suivant la conjoncture. Donne que les transferts federaux s'averent plus importants que ne l'est la migration, la reponse a la question posee est 'oui'. Migration interne Transferts federaux Convergence cyclique Enquete a echantillon permanent Generalized method of moments (GMM) Sequeira T. N. und Lopes A. F. Benotigt ein foderaler Staat einen Finanzausgleich zwischen den Bundesstaaten, wenn seine Arbeitskrafte mobil sind?, Regional Studies. In diesem Beitrag uberprufen wir auf empirische Weise die Theorie der optimalen Wahrungsraume fur die Mitglieder einer bestehenden Wahrungsunion (der Vereinigten Staaten). Die USA gelten als Land mit hoher Mobilitat von Arbeitskraften innerhalb der Bundesstaaten. In diesem Beitrag untersuchen wir gemeinsam die Folgen eines Finanzausgleichs zwischen den Bundesstaaten und einer Mobilitat von Arbeitskraften fur die zyklische Produktionsleistung der Staaten. Wir ziehen den Schluss, dass der Finanzausgleich zwischen den Bundesstaaten zweifellos zu einer Erhohung der zyklischen Produktionsleistung beitragt. Allerdings kann die zyklische Produktionsleistung in Abhangigkeit von bestimmten Bedingungen aufgrund von Abwanderung zu- oder abnehmen. Da sich der Finanzausgleich zwischen Bundesstaaten als deutlich wichtiger erweist als die Migration, lasst sich die Frage in der Uberschrift bejahen. Interne Migration Finanzausgleich zwischen Bundesstaaten Zyklische Konvergenz Paneldaten Generalized method of moments (GMM) Sequeira T. N. y Lopes A. F. ¿Necesita un pais federal transferencias entre las diferentes regiones si la fuerza de trabajo es movil?, Regional Studies. En este trabajo comprobamos desde un punto de vista empirico la teoria de las areas monetarias optimas para los miembros de una determinada union monetaria (los Estados Unidos). Estados Unidos es reconocido como un pais cuya movilidad laboral entre los estados es alta. En este articulo valoramos conjuntamente las consecuencias de disponer de transferencias entre las diferentes regiones y la movilidad laboral en terminos del rendimiento ciclico de los estados. Concluimos que las transferencias entre las regiones contribuyen sin duda a aumentar el rendimiento ciclico. Sin embargo, la emigracion puede causar un aumento o una disminucion del rendimiento ciclico en funcion de ciertas condiciones. Puesto que se ha demostrado que las transferencias entre regiones son mucho mas importantes que las migraciones, la respuesta a la pregunta del titulo es afirmativa. Migracion interna Transferencias entre regiones Convergencia ciclica Datos del panel Metodo generalizado de momentos (Generalized method of moments (GMM))

Suggested Citation

  • Tiago Neves Sequeira & Alexandra Ferreira Lopes, 2010. "Does a Federal Country Need Federal Transfers When It Has Labour Mobility?," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1117-1129.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:9:p:1117-1129
    DOI: 10.1080/00343400903365078
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400903365078
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343400903365078?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Cashin & Ratna Sahay, 1996. "Internal Migration, Center-State Grants, and Economic Growth in the States of India," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 123-171, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shabari Paul Dey & Debasis Neogi, 2015. "Testing Sigma and Unconditional Beta Convergence of GDP for SAARC Countries: Can Inclusion of China further Consolidate the Convergence?," Global Business Review, International Management Institute, vol. 16(5), pages 845-855, October.
    2. Schiff, Maurice, 1999. "Trade, migration, and welfare : the impact of social capital," Policy Research Working Paper Series 2044, The World Bank.
    3. Jing Li & Tsun Se Cheong & Wenyang Huang & Wai Yan Shum, 2022. "Examining the Regional Disparity of Agricultural Development: A Distribution Dynamics Approach," Sustainability, MDPI, vol. 14(19), pages 1-22, October.
    4. Anurag Banerjee & Nilanjan Banik, 2014. "Is India Shining?," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 59-72, February.
    5. Amit Nandan & Hrushikesh Mallick, 2022. "Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states," Economic Change and Restructuring, Springer, vol. 55(2), pages 1109-1139, May.
    6. repec:aut:wpaper:201706 is not listed on IDEAS
    7. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    8. Phillips, Kerk L. & Kunrong, Shen, 2005. "What effect does the size of the state-owned sector have on regional growth in China?," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1079-1102, January.
    9. Sanghamitra Bandyopadhyay, 2003. "Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth across Indian States," WIDER Working Paper Series DP2003-77, World Institute for Development Economic Research (UNU-WIDER).
    10. Schiff, Maurice, 2002. "Love thy neighbor: trade, migration, and social capital," European Journal of Political Economy, Elsevier, vol. 18(1), pages 87-107, March.
    11. S. Mahendra Dev, 2024. "Regional Dimensions in India: Economic Growth, Inclusive and Sustainable Development," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(2), pages 245-296, June.
    12. Matthew McCartney, 2018. "The China-Pakistan Economic Corridor (CPEC): Considering Contemporary Pakistan through Old-Fashioned Economics and Historical Case Studies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 23(2), pages 19-48, July-Dec.
    13. Ghosh, Madhusudan, 2006. "Regional Convergence in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(4), pages 1-20.
    14. Pinaki Chakraborty & Shatakshi Garg, 2018. "Fiscal pressure of migration and horizontal fiscal inequality: Evidence from Indian experience," WIDER Working Paper Series wp-2018-4, World Institute for Development Economic Research (UNU-WIDER).
    15. Amita Shah, 2010. "Natural Resources and Chronic Poverty in India: A Review of Issues and Evidence," Working Papers id:2773, eSocialSciences.
    16. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    17. Fernanda Llussa, 2007. "Geography matters more: geographical and institutional determinants of income in Brazilian states," Nova SBE Working Paper Series wp517, Universidade Nova de Lisboa, Nova School of Business and Economics.
    18. Biswajit Mohanty & N. R. Bhanumurthy, 2018. "Regional growth policy experience in India: the spatial dimension," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 479-505, August.
    19. Raman, Rakesh & Kumari, Reena, 2012. "Regional Disparity In Agricultural Development: A District-Level Analysis For Uttar Pradesh," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 1(2), pages 71-90.
    20. Bagchi, Amaresh, 2003. "Fifty years of fiscal federalism in India: An appraisal," Working Papers 03/2, National Institute of Public Finance and Policy.
    21. Elena Vakulenko, 2016. "Does migration lead to regional convergence in Russia?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 1-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:44:y:2010:i:9:p:1117-1129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.