Research Papers in Economics, Department of Economics, Stockholm University
Regional Policy, Integration and the Location of Industry
Abstract: Many countries devote a large part of their national
budget to regional policy. This paper analyses the interaction of economic
integration and some typical regional policies in a new economic geography
model with three regions of different size. The policies analysed are the
relocation of government activities, infrastructure investment and
subsidies to the establishment of industry. It is shown how regional policy
can easily be misdirected.
Keywords: agglomeration; economic geography; regional policy; (follow links to similar papers)
JEL-Codes: F12; F15; F21; R12; (follow links to similar papers)
17 pages, June 1, 2003
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