National growth versus spatial equality? A cautionary note on the new 'trade-off' thinking in regional policy discourse*

In: Regional science policy and practice: RSPP, Band 1, Heft 1, S. 3-13

Abstract

AbstractRecently, there has been increasing interest in whether and to what extent the spatial agglomeration or concentration of economic activity and employment in particular regions may actually benefit national growth. The implication is that policies that seek to reduce regional economic inequality may in fact be nationally inefficient: in other words, that a policy 'trade‐off' may exist between the pursuit of national growth and the reduction of regional economic disparities. This view has been particularly associated with the so‐called 'new economic geography' models, and seems to be circulating in official policy circles. This paper suggests that neither the theoretical argument nor the empirical evidence for a national efficiency‐regional equity trade‐off are yet convincing, and that until much more research has been undertaken on both fronts policy‐makers should exercise caution in appealing to this supposed trade‐off notion to justify particular policy choices.