區(qū)域經(jīng)濟(jì)學(xué)regionaleconomicdevelopment第一章課件

RegionalEconomicDevelopmentRegionalEconomicDevelopmentOffice: Room9320 SchoolofInternational EconomicEducationOfficehours: Monday10:30-12:00 Wednesday10:30-12:00Office: Room9320LESSON1LESSON1WHATISAREGION?WHATISAREGION?WHATISREGIONALDEVELOPMENT?WHATISREGIONALDEVELOPMENT?Aregioncanbesub-national,i.e.,partofacountryoritcanbesupra-national,acombinationofcountries.AnexampleofthelatteriswhenwetalkabouttheregionofSouth-EastAsia.AnexampleoftheformeriswhenwetalkaboutthewesternprovincesofChina.Aregioncanbesub-national,Forthiscourse,wewillbeconcernedwithsub-nationalregions,i.e.,partsofacountry.Moreparticularly,wewillbeconcernedwitheconomicdisparitiesbetweenregionsofacountry.Forthiscourse,wewillbecoRegionaldisparitiesrefertothefactthatwhenacountrygrows,notallpartsofthecountrymaygrowequally.Thismeansthat,overtime,agapmayopenupbetweenregions.Thisgapmaybeinincome,employment,socialdevelopment,orallofthese.Incomedisparitiesarewhatwewillbemainlyconcernedwithbutusually,whenaregionlagsbehindinincome,itwillalsolaginmany,perhapsmost,otherareasaswell.RegionaldisparitiesrefertoRegionaldevelopmentreferstotheeconomicdevelopmentofaregion.Ouremphasiswillbefocusedonlessdevelopedregions,orwhatsometimesaresimplyreferredtoaspoorregions.Andhowtheycanbedevelopedsothattheycatchupwiththemoredevelopedorrichregionsofacountry.RegionaldevelopmentreferstoInthemostgeneralsense,regionaldevelopmentisaboutfacilitating/creatingdevelopmentindifferentpartsofacountry.Butourconcernwillspecificallyfocusonpoorregionsandhowtheycanbemadeto“catch-up”tothenationalaverageindevelopment.Thismeansthatwewanttolookatwhydifferencesexistinthefirstplaceandwhatcanbedoneaboutitinthesecondplace.Inthemostgeneralsense,regThereisadifferencebetweenAskinghowtoencouragedevelopmentinaregionAskinghowtomakeallregionsequalintermsofdevelopmentandAskinghowtonarrowthegapinincomeandotherindicatorsbetweenregions.ThereisadifferencebetweenNoneofthesewillnecessarilyinvolvethesametargetsand/orprogramsforachievingthosetargets.Anothermajorquestioninthisregardthatneedstobeaddressediswhetheragoalofatleastnarrowingthegapbetweenregions,ifnotmakingthemequal,requiresgovernmentinvolvement.NoneofthesewillnecessarilyOneschoolofthoughtarguesthatthemarketwillnotcreateequalityacrossregionsandtherefore,governmentinterventionisrequiredifthisresultistobeachieved.Analternativeviewisthatgovernmentinterventionpreventsthemarketadjustmentmechanismfromworkingandthusinterfereswithsolvingtheproblemratherthanprovidingasolution.OneschoolofthoughtarguestInmanyrespects,theissueofregionaldevelopmentiscomparabletotheissueofinternationaldevelopment.Theformerisconcernedwithhowtoencouragedevelopmentinlessdevelopedregionsofacountryandnarrowthegapineconomicwell-beingbetweenregionswhilethelatterisconcernedwiththesamequestionsbutatthecountrylevel.Inmanyrespects,theissueofButthereisasignificantdifferencebetweenthecaseofregionswithinacountryandwholecountriesandthishastodowiththemobilityoffactorsofproduction.ButthereisasignificantdifAtthecountrylevel,theremaybebarrierstomobilityofbothcapitalandlabour.Capitalintoday’sworldhasbecomemuchmoremobilethanwasthecase,say,50yearsagooreventwentyyearsago.Buttherearestillrestrictionsinmanycountriesontheflowoffinancialcapitalinandoutofacountry.Atthecountrylevel,theremaButmoresignificantly,therearemajorrestrictionsonthemobilityoflabourbetweencountries.Mostcountrieshavestrictimmigrationlawsthatcontrolthemovementofworkersacrossborders.Butmoresignificantly,thereWhatisdifferentintheregionalcase,isthatbecausewearedealingwithregionsinsideacountry,labourandcapitalarefreetomoveanywhereinthecountryatthediscretionoftheindividualworkerorownerofcapital.Whichbringsusbacktotheissueofhowmarketsadjustandwhatgovernmentinvolvementinregionaldevelopmentshouldencompass.WhatisdifferentintheregioSupposewehavetworegions,AandB.AssumeAisahigh-wage,high-incomeregionandBisalow-wage,low-incomeregion.IflabourisfreetomovefromBtoA,thentherelativelyhigherwageinAwillcauseworkerstomovetoAandleaveB.Supposewehavetworegions,AWhenthishappens,thesupplyofworkersinAwillriseandthesupplyofworkersinBwillfall.Whenthesupplyofworkersgoesup,allotherthingsequal,thewageratepaidtoworkerswillfall.Andwhenthesupplygoesdown,thewageratewillrise.Whenthishappens,thesupplySowhenworkersmovefromBtoA,allotherthingsequal,thewagerateinAshouldgodownandthewagerateinBshouldgoup. WA>WBbeforemigration WAfallsandWBriseswithmigration WhenWA=WB,migrationstopsSowhenworkersmovefromBtoInthistypeofperfectlyfunctioningmarket,income/workerconvergesacrossregionsandregionaldisparitieswillbeeliminated.Inthiscase,governmentinterferencewillimpedetheadjustmentofmarketsandcausetheproblemofregionaldisparitiestobeperpetuated.InthistypeofperfectlyfuncInpractice,thismarketadjustmentmechanismdoesnotworkasthetheorypredicts,atleastnottothepointwheredisparitiesareeliminated.Whynot?Inpractice,thismarketadjusNotallworkersarethesame.WorkersinBmaynothavetheskillsrequiredforjobsinA.Somepeoplemaynotwanttomoveforpersonalornon-economicreasons.Governmentrulesandprogramsmayreduceincentivestomoveorincreaseincentivestostay.Workersinthehighwageregionwillnotsupportequalizationifthismeanstheirwageswillfall.Marketsarenotperfect.Notallworkersarethesame.Capitalmarketsinsideacountryshouldbehaveinasimilarmannerbutoftendonot.Inotherwords,itmaybedifficulttogetcapitaltomovetopoorerregionseventhoughreturnstocapitalmaybehighertherebecausecapitalisrelativelyscarce.Ifreturnsarehigher,capitalshouldmovetolessdevelopedregionsandthenewinvestmentthiscreateswillinturnhelptodevelopthepoorregion.Butthisdoesnothappenmuchofthetime.CapitalmarketsinsideacountIfthemarketadjustmentmechanismworkedasthetheorysaysitwill,therewouldbenoproblemofregionaldisparities.Becausetheadjustmentdoesnotworkperfectly,theproblemofregionaldisparitiesdoesexist.IfthemarketadjustmentmechaAreweonlyconcernedwithdifferencesinregionalincome?Notnecessarily.AreweonlyconcernedwithdifDevelopmentmaybeaboutmorethangrowthofincome.Basically,developmentmeansimprovingthewell-beingofpeople/citizens.Soregionaldevelopmentisaboutimprovingthewell-beingofpeopleinaparticularregion.DevelopmentmaybeaboutmoreWell-beingincludesincomebutitmayalsoincludemanyotherthingsthatpeopledeemtobeimportanttothequalityoftheirlives.ThismayincludethingslikeHealthEducationEnvironment.Well-beingincludesincomebutItmayalsoincludeSocialvaluesCulturalvaluesPoliticalconsiderations.Sowell-beingisnotjustaboutmaterialgoodsandservicesandincome–itisnotjustabouteconomics.ItmayalsoincludeButhavingsaidthis,IncomeclearlydoesmatterAndIncomemaymattermorethananythingelseormattertomorepeopleButhavingsaidthis,ThequestionofregionaldisparitieshasbecomeveryimportantinChinaaseconomicgrowthoftheoveralleconomyhasoccurredinthelast30years.Specifically,mostofChina’sgrowthhasoccurredinthecoastalprovincesandalthoughtherehasbeensomegrowthinallpartsofthecountry,relativelymoregrowthhastakenplaceinthecoastalprovincesthanintheinteriorandfarwesternprovinces.ThequestionofregionaldispaWewillmoveonatthispointtoexamineareportontheChineseeconomythatcameoutapproximatelyayearagosothatwehaveafirmerideaofthecontextforoursubsequentdiscussionofregionaldisparitiesandregionaldevelopmentinaChinesecontext.WewillmoveonatthispointRegionalEconomicDevelopmentRegionalEconomicDevelopmentOffice: Room9320 SchoolofInternational EconomicEducationOfficehours: Monday10:30-12:00 Wednesday10:30-12:00Office: Room9320LESSON1LESSON1WHATISAREGION?WHATISAREGION?WHATISREGIONALDEVELOPMENT?WHATISREGIONALDEVELOPMENT?Aregioncanbesub-national,i.e.,partofacountryoritcanbesupra-national,acombinationofcountries.AnexampleofthelatteriswhenwetalkabouttheregionofSouth-EastAsia.AnexampleoftheformeriswhenwetalkaboutthewesternprovincesofChina.Aregioncanbesub-national,Forthiscourse,wewillbeconcernedwithsub-nationalregions,i.e.,partsofacountry.Moreparticularly,wewillbeconcernedwitheconomicdisparitiesbetweenregionsofacountry.Forthiscourse,wewillbecoRegionaldisparitiesrefertothefactthatwhenacountrygrows,notallpartsofthecountrymaygrowequally.Thismeansthat,overtime,agapmayopenupbetweenregions.Thisgapmaybeinincome,employment,socialdevelopment,orallofthese.Incomedisparitiesarewhatwewillbemainlyconcernedwithbutusually,whenaregionlagsbehindinincome,itwillalsolaginmany,perhapsmost,otherareasaswell.RegionaldisparitiesrefertoRegionaldevelopmentreferstotheeconomicdevelopmentofaregion.Ouremphasiswillbefocusedonlessdevelopedregions,orwhatsometimesaresimplyreferredtoaspoorregions.Andhowtheycanbedevelopedsothattheycatchupwiththemoredevelopedorrichregionsofacountry.RegionaldevelopmentreferstoInthemostgeneralsense,regionaldevelopmentisaboutfacilitating/creatingdevelopmentindifferentpartsofacountry.Butourconcernwillspecificallyfocusonpoorregionsandhowtheycanbemadeto“catch-up”tothenationalaverageindevelopment.Thismeansthatwewanttolookatwhydifferencesexistinthefirstplaceandwhatcanbedoneaboutitinthesecondplace.Inthemostgeneralsense,regThereisadifferencebetweenAskinghowtoencouragedevelopmentinaregionAskinghowtomakeallregionsequalintermsofdevelopmentandAskinghowtonarrowthegapinincomeandotherindicatorsbetweenregions.ThereisadifferencebetweenNoneofthesewillnecessarilyinvolvethesametargetsand/orprogramsforachievingthosetargets.Anothermajorquestioninthisregardthatneedstobeaddressediswhetheragoalofatleastnarrowingthegapbetweenregions,ifnotmakingthemequal,requiresgovernmentinvolvement.NoneofthesewillnecessarilyOneschoolofthoughtarguesthatthemarketwillnotcreateequalityacrossregionsandtherefore,governmentinterventionisrequiredifthisresultistobeachieved.Analternativeviewisthatgovernmentinterventionpreventsthemarketadjustmentmechanismfromworkingandthusinterfereswithsolvingtheproblemratherthanprovidingasolution.OneschoolofthoughtarguestInmanyrespects,theissueofregionaldevelopmentiscomparabletotheissueofinternationaldevelopment.Theformerisconcernedwithhowtoencouragedevelopmentinlessdevelopedregionsofacountryandnarrowthegapineconomicwell-beingbetweenregionswhilethelatterisconcernedwiththesamequestionsbutatthecountrylevel.Inmanyrespects,theissueofButthereisasignificantdifferencebetweenthecaseofregionswithinacountryandwholecountriesandthishastodowiththemobilityoffactorsofproduction.ButthereisasignificantdifAtthecountrylevel,theremaybebarrierstomobilityofbothcapitalandlabour.Capitalintoday’sworldhasbecomemuchmoremobilethanwasthecase,say,50yearsagooreventwentyyearsago.Buttherearestillrestrictionsinmanycountriesontheflowoffinancialcapitalinandoutofacountry.Atthecountrylevel,theremaButmoresignificantly,therearemajorrestrictionsonthemobilityoflabourbetweencountries.Mostcountrieshavestrictimmigrationlawsthatcontrolthemovementofworkersacrossborders.Butmoresignificantly,thereWhatisdifferentintheregionalcase,isthatbecausewearedealingwithregionsinsideacountry,labourandcapitalarefreetomoveanywhereinthecountryatthediscretionoftheindividualworkerorownerofcapital.Whichbringsusbacktotheissueofhowmarketsadjustandwhatgovernmentinvolvementinregionaldevelopmentshouldencompass.WhatisdifferentintheregioSupposewehavetworegions,AandB.AssumeAisahigh-wage,high-incomeregionandBisalow-wage,low-incomeregion.IflabourisfreetomovefromBtoA,thentherelativelyhigherwageinAwillcauseworkerstomovetoAandleaveB.Supposewehavetworegions,AWhenthishappens,thesupplyofworkersinAwillriseandthesupplyofworkersinBwillfall.Whenthesupplyofworkersgoesup,allotherthingsequal,thewageratepaidtoworkerswillfall.Andwhenthesupplygoesdown,thewageratewillrise.Whenthishappens,thesupplySowhenworkersmovefromBtoA,allotherthingsequal,thewagerateinAshouldgodownandthewagerateinBshouldgoup. WA>WBbeforemigration WAfallsandWBriseswithmigration WhenWA=WB,migrationstopsSowhenworkersmovefromBtoInthistypeofperfectlyfunctioningmarket,income/workerconvergesacrossregionsandregionaldisparitieswillbeeliminated.Inthiscase,governmentinterferencewillimpedetheadjustmentofmarketsandcausetheproblemofregionaldisparitiestobeperpetuated.InthistypeofperfectlyfuncInpractice,thismarketadjustmentmechanismdoesnotworkasthetheorypredicts,atleastnottothepointwheredisparitiesareeliminated.Whynot?Inpractice,thismarketadjusNotallworkersarethesame.WorkersinBmaynothavetheskillsrequiredforjobsinA.Somepeoplemaynotwanttomoveforpersonalornon-economicreasons.Governmentrulesandprogramsmayreduceincentivestomoveorincreaseincentivestostay.Workersinthehighwageregionwillnotsupportequalizationifthismeanstheirwageswillfall.Marketsarenotperfect.Notallworkersarethesame.Capitalmarketsinsideacountryshouldbehaveinasimilarmannerbutoftendonot.Inotherwords,itmaybedifficulttogetcapitaltomovetopoorerregionseventhoughreturnstocapitalmaybehighertherebecausecapitalisrelativelyscarce.Ifreturnsarehigher,capitalshouldmovetolessdevelopedregionsandthenewinvestmentthiscreateswillinturnhelptodevelopthepoorregion.Butthisdoesnothappenmuchofthetime.CapitalmarketsinsideacountIfthemarketadjustmentmechanismworkedasthetheorysaysitwill,therewouldbenoproblemofregionaldisparities.Becausetheadjustmentdoesnotworkperfectly,thep