Structural Reforms and Regional Convergence
Electronic Access:
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Summary:
Which structural reforms affect the speed the regional convergence within a country? We found that domestic financial development, trade/current account openness, better institutional infrastructure, and selected labor market reforms facilitate regional convergence. However, these reforms have mixed effects on the growth of regions closer to the country’s development frontier. We also document that regional income disparity and average income are inversely correlated across countries so that speeding up regional convergence increases national income. We also present a theoretical model to discuss these results.
Series:
Working Paper No. 2012/106
Subject:
Labor Labor taxes Macrostructural analysis Minimum wages Production Productivity Structural reforms Tax policy Tax wedge Taxes
English
Publication Date:
April 1, 2012
ISBN/ISSN:
9781475503272/1018-5941
Stock No:
WPIEA2012106
Pages:
34
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