Theoretical aspects of the equalizing regional policy. The position of the equalizing regional policy. The analysis of efficiency of the equalizing regional policy. Analysis of the Pflueger and Suedekum model "Integration, Agglomeration and Welfare".
(Puga, 2001) In case of agglomeration where the average or high level of migration (for example, the US or Russian regions), the location of the firm is determined by the level of costs and demand that induce the agglomeration of industry. (Martin, 1999) Fig. 2 Transfers as instrument of conducting equalizing regional policy (Martin, 1999) Quahs results suggest that there is a trade-off between regional equality and aggregate economic growth. According to his results, two countries, Portugal and Spain, stand out among the Cohesion group of countries (Greece, Ireland, Portugal and Spain), which have achieved high growth rates and have a relative equalization in income per capita with the rest of Europe. But they also have an inequality in the distribution of income within their borders. As for Greece and Ireland, they are characterized by another situation: with a relatively equal distribution of income within the country, there is income divergence with other EU countries and a low rate of economic growth.
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