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What Does Greater Economic Integration Mean For Interregional Income Inequality? An Analysis Of Oecd Countries And Regions

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  • Florence BOUVET

    (Sonoma State University)

Abstract

This paper provides an overview of the evolution of interregional income disparities among 304 regions from 27 OECD countries between 1995 and 2005. This sample of regions allows to compare interregional income inequality in different economic integration systems: the USA (used as an example of a political union), the European Economic and Monetary Union (EMU), the European Union (EU), and the North-American Free Trade Agreement (NAFTA). Overall, interregional income inequality is lower among US states and EMU regions than among EU regions and NAFTA regions. Thus, interregional income inequality seems to be negatively related to economic integration. However, income inequality has risen among US states, while it has been stable among OECD regions, and has even decreased among European regions. Moreover, rank-size scatterplots suggest that inequality is higher among low-income regions than among richer regions.

Suggested Citation

  • Florence BOUVET, 2011. "What Does Greater Economic Integration Mean For Interregional Income Inequality? An Analysis Of Oecd Countries And Regions," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 39-58.
    • Handle: RePEc:tou:journl:v:33:y:2011:p:39-58
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    References listed on IDEAS

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    1. Brülhart, Marius, 1996. "Regional Integration, Scale Economies and Industry Location in the European Union," CEPR Discussion Papers 1435, C.E.P.R. Discussion Papers.
    2. Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 653-679.
    3. Xavier Gabaix, 1999. "Zipf's Law for Cities: An Explanation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 739-767.
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    Cited by:

    1. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 323-344, September.

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    More about this item

    Keywords

    REGIONAL INEQUALITY; ECONOMIC INTEGRATION; EUROPEAN UNION; EMU; NAFTA; ZIPF LAW;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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