Abstract
Applying a dual technology model to economic geography, this paper studies the effects of regional integration on the location of labor and industrial activity in a Third World economy. Locational choice is a tradeoff between the benefits of agglomoration due to increasing returns to scale, and the benefits of dispersion due to a partly immobile labor force. The main result is that regional integration, in the form of a reduction in transportation costs, fosters a regional balance in economic activity and income. Government intervention may be justified for reasons of both inefficiency and inequality.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
