IDEAS home Printed from https://ideas.repec.org/a/tou/journl/v18y2003p147-170.html
   My bibliography  Save this article

Economic Growth, Inequality And Spatial Demographic Distribution: A Brazilian Case

Author

Listed:
  • Raphael BAR-EL

    (Ben-Gurion University of the Negev, Israël)

  • Dafna SCHWARTZ

    (Ben-Gurion University of the Negev, Israël)

Abstract

This article investigates the incongruity between macroeconomic growth and poverty reduction or income distribution from a regional perspective, and relates it to the urbanization rates and the urban concentration. Using the case of the state of Ceara in Northeast Brazil, we find a persistent and even growing unequal distribution of income in spite of the relatively rapid macroeconomic growth. The results tend to support the recent directions in economic geography regarding the inefficiency of too extreme urban agglomerations. The primary conclusion drawn from the findings is that the prevailing policy of sectoral support (to industry, tourism) may imply regional distortions, and therefore it should be complemented by a regional policy, leading to a spatial urban restructuring.

Suggested Citation

  • Raphael BAR-EL & Dafna SCHWARTZ, 2003. "Economic Growth, Inequality And Spatial Demographic Distribution: A Brazilian Case," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 18, pages 147-170.
  • Handle: RePEc:tou:journl:v:18:y:2003:p:147-170
    as

    Download full text from publisher

    File URL: https://regionetdeveloppement.univ-tln.fr/wp-content/uploads/R18_Barel_Schwartz.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scarlett Epstein, T. & Jezeph, David, 2001. "Development--There is Another Way: A Rural-Urban Partnership Development Paradigm," World Development, Elsevier, vol. 29(8), pages 1443-1454, August.
    2. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
    3. Cardoso, Eliana & Helwege, Ann, 1992. "Below the line: Poverty in Latin America," World Development, Elsevier, vol. 20(1), pages 19-37, January.
    4. Selowsky, Marcelo, 1981. "Income distribution, basic needs and trade-offs with growth: The case of semi-industrialized Latin American countries," World Development, Elsevier, vol. 9(1), pages 73-92, January.
    5. Kiminori Matsuyama, 2000. "Endogenous Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 743-759.
    6. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
    7. Goldsmith, William W. & Wilson, Robert, 1991. "Poverty and distorted industrialization in the Brazilian Northeast," World Development, Elsevier, vol. 19(5), pages 435-455, May.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. Philippe Aghion & Patrick Bolton, 1997. "A Theory of Trickle-Down Growth and Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 151-172.
    10. Luis Fernando Lanaspa & Fernando Pueyo & Fernando Sanz, 2001. "The Public Sector and Core-Periphery Models," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1639-1649, September.
    11. Maurice Catin & Christophe Van Huffel, 2003. "Concentration urbaine et industrialisation," Mondes en développement, De Boeck Université, vol. 121(1), pages 87-107.
    12. repec:bla:econom:v:67:y:2000:i:267:p:307-24 is not listed on IDEAS
    13. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 133-152.
    14. Bar-El, Raphael & Felsenstein, Daniel, 1990. "Entrepreneurship and rural industrialization: Comparing urban and rural patterns of locational choice in Israel," World Development, Elsevier, vol. 18(2), pages 257-267, February.
    15. Luis Fernando Lanaspa & Fernando Sanz, 1999. "Krugman's Core-Periphery Model with Heterogeneous Quality of Land," Urban Studies, Urban Studies Journal Limited, vol. 36(3), pages 499-507, March.
    16. Kim, Kwan S., 1997. "Income distribution and poverty: An interregional comparison," World Development, Elsevier, vol. 25(11), pages 1909-1924, November.
    17. Fishman, Arthur & Simhon, Avi, 2002. "The Division of Labor, Inequality and Growth," Journal of Economic Growth, Springer, vol. 7(2), pages 117-136, June.
    18. Nabeel A. Goheer, 1999. "Poverty in Pakistan: Increasing Incidence, Chronic Gender Preponderance, and the Plausibility of Grameen-type Intermediation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 873-894.
    19. Luis Fernando Lanaspa & Fernando Sanz, 2001. "articles: Multiple equilibria, stability, and asymmetries in Krugman's core-periphery model," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(4), pages 425-438.
    20. James J. Biles & Bruce W. Pigozzi, 2000. "The Interaction of Economic Reforms, Socio‐economic Structure and Agriculture in Mexico," Growth and Change, Wiley Blackwell, vol. 31(1), pages 3-22.
    21. Andrew K. Copus, 2001. "From Core-periphery to Polycentric Development: Concepts of Spatial and Aspatial Peripherality," European Planning Studies, Taylor & Francis Journals, vol. 9(4), pages 539-552, June.
    22. Forslid, Rikard, 1999. "Agglomeration with Human and Physical Capital: an Analytically Solvable Case," CEPR Discussion Papers 2102, C.E.P.R. Discussion Papers.
    23. Richard C. Michel, 1991. "Economic growth and income equality since the 1982 recession," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 10(2), pages 181-203.
    24. Euijune Kim & Kabsung Kim, 2002. "Impacts of regional development strategies on growth and equity of Korea: A multiregional CGE model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 165-180.
    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. Miki Malul & Raphael Bar-El, 2009. "The Gap between Free Market and Social Optimum in the Location Decision of Economic Activity," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2045-2059, September.
    2. Maurice Catin & Xubei Luo & Christophe van Huffel, 2005. "Openness, industrialization and geographic concentration of activities in China," Post-Print hal-01295839, HAL.
    3. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    4. Anthony J. Venables, 2005. "Spatial disparities in developing countries: cities, regions, and international trade," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 3-21, January.
    5. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    6. Stephan Russek, 2010. "Differential labour mobility and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 587-606, August.
    7. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration Effects in Border Regions - A Survey of Economic Theory and Empirical Studies," Discussion Paper Series 26340, Hamburg Institute of International Economics.
    8. Mauricio Ramírez Grajeda & Ian M. Sheldon, 2015. "Trade Openness and City Interaction," World Scientific Book Chapters, in: Amitrajeet A Batabyal & Peter Nijkamp (ed.), THE REGION AND TRADE New Analytical Directions, chapter 10, pages 267-318, World Scientific Publishing Co. Pte. Ltd..
    9. BEHRENS, Kristian, 2003. "International trade and internal geography revisited," LEG - Document de travail - Economie 2003-09, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    10. Maurice Catin & Christophe Van Huffel, 2004. "Ouverture économique et inégalités régionales de développement en Chine : le rôle des institutions," Mondes en développement, De Boeck Université, vol. 128(4), pages 7-23.
    11. Lall, Somik V. & Funderburg, Richard & Yepes, Tito, 2003. "Location, concentration, and performance of economic activity in Brazil," Policy Research Working Paper Series 3268, The World Bank.
    12. Kristian Behrens, 2011. "International Integration And Regional Inequalities: How Important Is National Infrastructure?," Manchester School, University of Manchester, vol. 79(5), pages 952-971, September.
    13. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    14. Walid Chatti & Bassem Ben Soltane & Turki Abalala, 2019. "Impacts of Public Transport Policy on City Size and Welfare," Networks and Spatial Economics, Springer, vol. 19(4), pages 1097-1122, December.
    15. Tripathi, Sabyasachi, 2012. "Large Agglomerations and Economic Growth in Urban India: An Application of Panel Data Model," MPRA Paper 41574, University Library of Munich, Germany.
    16. Nir Kaplan & Itzhak Omer, 2022. "Multiscale Accessibility—A New Perspective of Space Structuration," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    17. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.
    18. Candau Fabien, 2005. "Lumpy World and Race to the Bottom," International Trade 0508008, University Library of Munich, Germany, revised 20 Feb 2006.
    19. Yuexing Lan & Charles Hegji, 2009. "A new look at the trickle-down effect in the united states economy," Economics Bulletin, AccessEcon, vol. 29(3), pages 1743-1748.
    20. María Ayuda & Fernando Collantes & Vicente Pinilla, 2010. "From locational fundamentals to increasing returns: the spatial concentration of population in Spain, 1787–2000," Journal of Geographical Systems, Springer, vol. 12(1), pages 25-50, March.

    More about this item

    Keywords

    BRAZIL; ECONOMIC GROWTH; REGIONAL DEVELOPMENT; INEQUALITY; URBANIZATION;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    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:tou:journl:v:18:y:2003:p:147-170. 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: Christophe Van Huffel (email available below). General contact details of provider: https://edirc.repec.org/data/letlnfr.html .

    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.