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Does economic globalization affect regional inequality? A cross-country analysis

Ezcurra, Roberto and Rodríguez-Pose, Andrés (2013) Does economic globalization affect regional inequality? A cross-country analysis. World Development, 52. pp. 92-103. ISSN 0305-750X

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Identification Number: 10.1016/j.worlddev.2013.07.002

Abstract

This paper investigates the relationship between economic globalization and regional inequality in a panel of 47 countries over the period 1990-2007, using a measure of globalization that distinguishes the different dimensions of economic integration. The results show that there is a positive and statistically significant association between economic globalization and the magnitude of regional disparities. Countries with a greater degree of economic integration with the rest of the world tend to register higher levels of regional inequality. This finding is robust to the inclusion of additional explanatory variables and to the choice of the specific measure used to quantify the relevance of spatial inequality within the sample countries. Our analysis also reveals that the spatial impact of economic globalization is greater in low- and middle-income countries, whose levels of regional disparities are on average significantly higher than in high-income countries.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/03057...
Additional Information: © 2013 Elsevier Ltd
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > European Institute
Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Date Deposited: 12 Sep 2013 13:27
Last Modified: 19 Jun 2014 09:40
Projects: 269868, ECO2011-29314-C02-01
Funders: European Research Council
URI: http://eprints.lse.ac.uk/id/eprint/52526

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