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The territorial inequalities caused by the concentration of economic activity and population in the limited, most favourable areas, are typical for all countries and for all periods of economic development cycles. Spatial concentration of production ensures maximum efficiency but leads to greater territorial imbalances and causes social and political tension among social groups and regions. The effective governmental regional policy helps to solve the problem. The Nobel laureate P. Kingman (2008) brilliantly illustrated the mechanism whereby firms try to place production capacities in big regions (big in terms of area or population) to reduce transportation costs and give benefits to the scale of production since most manufactured goods are to be consumed at the local market. (fragment of text)
The territorial inequalities caused by the concentration of economic activity and population in the limited, most favourable areas, are typical for all countries and for all periods of economic development cycles. Spatial concentration of production ensures maximum efficiency but leads to greater territorial imbalances and causes social and political tension among social groups and regions. The effective governmental regional policy helps to solve the problem. The Nobel laureate P. Kingman (2008) brilliantly illustrated the mechanism whereby firms try to place production capacities in big regions (big in terms of area or population) to reduce transportation costs and give benefits to the scale of production since most manufactured goods are to be consumed at the local market. (fragment tekstu)
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140--153
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autor
Bibliografia
- Fujita M., Knigman P., Venables T.: The Spatial Economy - Cities, Regions and International Trade. MIT Press, Cambridge, MA 1999
- Krugman P., Venables T.: Inequality Globalization and the Rise of Nations. "The Quarterly Journal of Economics" 1995, Vol. 110, No. 4, p. 857-880
- Гpaн6epг A.F. «Ocнobы peгиoнaљнoй Экoнomики». - M.: ГY BШЭ, 2006
- http://regionalistica.ru - website of the Institute of Regional Policy
- www.minregion.ru - website of the Ministry of Regional Development ("The Concept of improving regional policy in the Russian Federation", "Anti-crisis measures of the Government of the Russian Federation")
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