Back to Search
Start Over
Transboundary capital and pollution flows and the emergence of regional inequalities
- Source :
- Discrete & Continuous Dynamical Systems - B. 22:913-922
- Publication Year :
- 2017
- Publisher :
- American Institute of Mathematical Sciences (AIMS), 2017.
-
Abstract
- spatial heterogeneity, pollution flow, Solow model We seek to explain the emergence of spatial heterogeneity regarding development and pollution on the basis of interactions associated with the movement of capital and polluting activities from one economy to another. We use a simple dynamical model describing capital accumulation along the lines of a fixed-savings-ratio Solow-type model capable of producing endogenous growth and convergence behavior, and pollution accumulation in each country with pollution diffusion between countries or regions. The basic mechanism underlying the movements of capital across space is the quest for locations where the marginal productivity of capital is relatively higher than the productivity at the location of origin. The notion that capital moves to locations of relatively higher productivity but not necessarily from locations of high concentration to locations of low concentration, does not face difficulties associated with the Lucas paradox. We show that, for a wide range of capital and pollution rates of flow, spatial heterogeneity emerges even between two economies with identical fundamental structures. These results can be interpreted as suggesting that the neoclassical convergence hypothesis might not hold under differential rates of flow of capital and polluting activities among countries of the same fundamental structure.
- Subjects :
- jel:C65
Lucas paradox
Diffusion
Capital accumulation
Transboundary flow
jel:O44
0502 economics and business
Economics
Discrete Mathematics and Combinatorics
Economic geography
050207 economics
Productivity
Discrete Mathematics and Combinatoric
Endogenous growth theory
Turing instability
Applied Mathematics
05 social sciences
1. No poverty
Convergence (economics)
Capital
Pollution
Spatial heterogeneity
Capital (economics)
8. Economic growth
jel:Q52
jel:R12
050202 agricultural economics & policy
Transboundary flows, Capital, Pollution, Diffusion, Turing instability, Spatial heterogeneity
Marginal product of capital
Subjects
Details
- ISSN :
- 1553524X
- Volume :
- 22
- Database :
- OpenAIRE
- Journal :
- Discrete & Continuous Dynamical Systems - B
- Accession number :
- edsair.doi.dedup.....cccc454d9424e09fe292035704100888