We discuss regional disparities in economic performance and living standards. We first set out so... more We discuss regional disparities in economic performance and living standards. We first set out some key facts, and provide a conceptual framework to help analyze whether such disparities are efficient, or instead reflect market and/or policy failures. We examine whether policy attempts to reduce regional disparities necessarily involve a trade-off between equity and efficiency. We then investigate whether policymakers should focus on boosting the economic performance of lagging regions-or, conversely, accept the presence of regional disparities, and instead assist households in lagging regions through transfer payments, investments in education, health, and other basic services, and by facilitating out-migration.
The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
The findings, interpretations, and conclusions expressed herein do not necessarily reflect the vi... more The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the sponsoring organizations or the governments they represent. The sponsoring organizations do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the sponsoring organizations concerning the legal status of any territory or the endorsement or acceptance of such boundaries. All queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank,
The population of South Asia lives almost entirely in one mega-country or two large ones. In cont... more The population of South Asia lives almost entirely in one mega-country or two large ones. In contrast, the rather smaller population of sub-Saharan Africa is spread across some fifty countries. Does this political fragmentation have economic consequences? We suggest that both private economic activity and the provision of public goods benefit from powerful scale economies that confer advantages on the South Asian model. Paradoxically, although as a result Africa has a greater need than other regions for supra-national power structures, it has far less made less progress towards regional unity. Views expressed are those of the authors and do not represent institutional positions. Thanks to Mauro Caselli, Lisa Chauvet, Anke Hoeffler, Hyesung Kim and Jean-Louis Warnholz for statistical analysis. * Director, Centre for the Study of African Economies, Oxford University *** Oxford University and Chief Economist, UK Department for International Development.
Rapid urbanisation is a major feature of developing countries. Some 2 billion more people are lik... more Rapid urbanisation is a major feature of developing countries. Some 2 billion more people are likely to become city residents in the next 30 years, yet urbanisation has received little attention in the modern development economics literature. This paper reviews theoretical and empirical work on the determinants and effects of urbanisation. This suggests that there are substantial productivity benefits from cities, although unregulated outcomes may well lead to excessive primacy as externalities and coordination failures inhibit decentralisation of economic activity. Policy should operate both by identifying and addressing these market failures, and by seeking to remove institutional obstacles to decentralisation.
... an equilibrium the observed matrix of firms' market shares in different countries as an ... more ... an equilibrium the observed matrix of firms' market shares in different countries as an equilbrium. ... trade matrix, the implicit trade barriers or demand differences consistent with the equilibrium, are going to be lower in case II than in case AJ Venables, The economic integration of ...
... an equilibrium the observed matrix of firms' market shares in different countries as an ... more ... an equilibrium the observed matrix of firms' market shares in different countries as an equilbrium. ... trade matrix, the implicit trade barriers or demand differences consistent with the equilibrium, are going to be lower in case II than in case AJ Venables, The economic integration of ...
This paper reviews European experience of economic integration and discusses the key similarities... more This paper reviews European experience of economic integration and discusses the key similarities and difference between the European and Asian models. Europe has been able to achieve 'deep integration' because of the vision of a united Europe, the political balance within Europe, and the development of the institutions of the EU. None of these features are present in Asia. Complementarities between Asian economies create gains from trade liberalisation, but it seems unlikely that Asia will follow the European path of 'deep integration', or attain the consequent economic benefits.
We consider a Heckscher-Ohlin model in which goods and factors of production can be traded, but t... more We consider a Heckscher-Ohlin model in which goods and factors of production can be traded, but trade involves transactions costs. Goods trade alone will not equalize factor prices, so there is an incentive for trade in factors of production. Whether goods or factors are traded depends on endowments and transactions costs. We characterize equilibria in which there is no trade,
We develop and econometrically estimate a model of the location of industries across countries. T... more We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production. We estimate the model on sectoral data for EU countries over the period 1980-97, and find that endowments of skilled and scientific labour are important determinants of industrial structure, as also are forward and backward linkages to industry.
The Robert Schuman Centre for Advanced Studies (RSCAS), directed by Stefano Bartolini since Septe... more The Robert Schuman Centre for Advanced Studies (RSCAS), directed by Stefano Bartolini since September 2006, is home to a large post-doctoral programme. Created in 1992, it aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society. The Centre hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union.
The population of South Asia lives almost entirely in one mega-country or two large ones. In cont... more The population of South Asia lives almost entirely in one mega-country or two large ones. In contrast, the rather smaller population of sub-Saharan Africa is spread across some fifty countries. Does this political fragmentation have economic consequences? We suggest that both private economic activity and the provision of public goods benefit from powerful scale economies that confer advantages on the South Asian model. Paradoxically, although as a result Africa has a greater need than other regions for supra-national power structures, it has far less made less progress towards regional unity.
The UNU-Wider project on ‘Spatial disparities in development’, directed by Ravi Kanbur and Anthon... more The UNU-Wider project on ‘Spatial disparities in development’, directed by Ravi Kanbur and Anthony J. Venables, has analyzed evidence on the extent of spatial inequalities in over 50 developing countries. The peer reviewed papers published under the auspices of the project find that spatial inequalities are high, with disparities between rural and urban areas, and also between geographically advantaged and disadvantaged regions. In many countries such disparities are increasing, partly as a consequence of the uneven impact of trade openness and globalization. While there are efficiency gains from the concentration of economic activity in urban centers and in coastal districts, the associated regional inequalities are a major contributor to overall inequality. They are particularly worrying if they align with political or ethnic divisions. The broad outline of appropriate policy for managing high and rising spatial disparities is also clear. The case for policy interventions to ensure a more spatially equitable allocation of infrastructure and public services, and for policies to ensure freer migration, has been made powerfully in the papers in this project.
We discuss regional disparities in economic performance and living standards. We first set out so... more We discuss regional disparities in economic performance and living standards. We first set out some key facts, and provide a conceptual framework to help analyze whether such disparities are efficient, or instead reflect market and/or policy failures. We examine whether policy attempts to reduce regional disparities necessarily involve a trade-off between equity and efficiency. We then investigate whether policymakers should focus on boosting the economic performance of lagging regions-or, conversely, accept the presence of regional disparities, and instead assist households in lagging regions through transfer payments, investments in education, health, and other basic services, and by facilitating out-migration.
The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
The findings, interpretations, and conclusions expressed herein do not necessarily reflect the vi... more The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the sponsoring organizations or the governments they represent. The sponsoring organizations do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the sponsoring organizations concerning the legal status of any territory or the endorsement or acceptance of such boundaries. All queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank,
The population of South Asia lives almost entirely in one mega-country or two large ones. In cont... more The population of South Asia lives almost entirely in one mega-country or two large ones. In contrast, the rather smaller population of sub-Saharan Africa is spread across some fifty countries. Does this political fragmentation have economic consequences? We suggest that both private economic activity and the provision of public goods benefit from powerful scale economies that confer advantages on the South Asian model. Paradoxically, although as a result Africa has a greater need than other regions for supra-national power structures, it has far less made less progress towards regional unity. Views expressed are those of the authors and do not represent institutional positions. Thanks to Mauro Caselli, Lisa Chauvet, Anke Hoeffler, Hyesung Kim and Jean-Louis Warnholz for statistical analysis. * Director, Centre for the Study of African Economies, Oxford University *** Oxford University and Chief Economist, UK Department for International Development.
Rapid urbanisation is a major feature of developing countries. Some 2 billion more people are lik... more Rapid urbanisation is a major feature of developing countries. Some 2 billion more people are likely to become city residents in the next 30 years, yet urbanisation has received little attention in the modern development economics literature. This paper reviews theoretical and empirical work on the determinants and effects of urbanisation. This suggests that there are substantial productivity benefits from cities, although unregulated outcomes may well lead to excessive primacy as externalities and coordination failures inhibit decentralisation of economic activity. Policy should operate both by identifying and addressing these market failures, and by seeking to remove institutional obstacles to decentralisation.
... an equilibrium the observed matrix of firms' market shares in different countries as an ... more ... an equilibrium the observed matrix of firms' market shares in different countries as an equilbrium. ... trade matrix, the implicit trade barriers or demand differences consistent with the equilibrium, are going to be lower in case II than in case AJ Venables, The economic integration of ...
... an equilibrium the observed matrix of firms' market shares in different countries as an ... more ... an equilibrium the observed matrix of firms' market shares in different countries as an equilbrium. ... trade matrix, the implicit trade barriers or demand differences consistent with the equilibrium, are going to be lower in case II than in case AJ Venables, The economic integration of ...
This paper reviews European experience of economic integration and discusses the key similarities... more This paper reviews European experience of economic integration and discusses the key similarities and difference between the European and Asian models. Europe has been able to achieve 'deep integration' because of the vision of a united Europe, the political balance within Europe, and the development of the institutions of the EU. None of these features are present in Asia. Complementarities between Asian economies create gains from trade liberalisation, but it seems unlikely that Asia will follow the European path of 'deep integration', or attain the consequent economic benefits.
We consider a Heckscher-Ohlin model in which goods and factors of production can be traded, but t... more We consider a Heckscher-Ohlin model in which goods and factors of production can be traded, but trade involves transactions costs. Goods trade alone will not equalize factor prices, so there is an incentive for trade in factors of production. Whether goods or factors are traded depends on endowments and transactions costs. We characterize equilibria in which there is no trade,
We develop and econometrically estimate a model of the location of industries across countries. T... more We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production. We estimate the model on sectoral data for EU countries over the period 1980-97, and find that endowments of skilled and scientific labour are important determinants of industrial structure, as also are forward and backward linkages to industry.
The Robert Schuman Centre for Advanced Studies (RSCAS), directed by Stefano Bartolini since Septe... more The Robert Schuman Centre for Advanced Studies (RSCAS), directed by Stefano Bartolini since September 2006, is home to a large post-doctoral programme. Created in 1992, it aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society. The Centre hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union.
The population of South Asia lives almost entirely in one mega-country or two large ones. In cont... more The population of South Asia lives almost entirely in one mega-country or two large ones. In contrast, the rather smaller population of sub-Saharan Africa is spread across some fifty countries. Does this political fragmentation have economic consequences? We suggest that both private economic activity and the provision of public goods benefit from powerful scale economies that confer advantages on the South Asian model. Paradoxically, although as a result Africa has a greater need than other regions for supra-national power structures, it has far less made less progress towards regional unity.
The UNU-Wider project on ‘Spatial disparities in development’, directed by Ravi Kanbur and Anthon... more The UNU-Wider project on ‘Spatial disparities in development’, directed by Ravi Kanbur and Anthony J. Venables, has analyzed evidence on the extent of spatial inequalities in over 50 developing countries. The peer reviewed papers published under the auspices of the project find that spatial inequalities are high, with disparities between rural and urban areas, and also between geographically advantaged and disadvantaged regions. In many countries such disparities are increasing, partly as a consequence of the uneven impact of trade openness and globalization. While there are efficiency gains from the concentration of economic activity in urban centers and in coastal districts, the associated regional inequalities are a major contributor to overall inequality. They are particularly worrying if they align with political or ethnic divisions. The broad outline of appropriate policy for managing high and rising spatial disparities is also clear. The case for policy interventions to ensure a more spatially equitable allocation of infrastructure and public services, and for policies to ensure freer migration, has been made powerfully in the papers in this project.
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Papers by Tony Venables