INVESTMENTS AND TRANSPORTS IN INTERDEPENDENT REGIONS. A DYNAMIC REGIONAL MODEL

In many industrialized countries the economic development has entailed a contradiction between national economic growth and regional equity. This conflict is often congruent with a tension between the national economic planning and the regional (welfare-oriented) planning systems. The aim of the paper is to use a normative mathematical programming model to elucidate some consistency problems that arise when national economic forecasts and targets meet regional welfare goals. In the model all conceivable regional development trajectories for nationally mobile sectors that fulfil certain basic satisfying targets (national sectoral production, regional employment, structural stability) are compared in terms of the room for consumption that they yield. Since production forecasts are predetermined the regional investment strategy that maximizes the room for consumption may be obtained by minimizing discounted investment and transport costs up to a horizon year. In the paper a mathematical model that rests on the above elements is formulated and, with Swedish data, used as a tool to investigate if some fundametal national economic and regional targets are consistent. If such a basic consistency is at hand, optimal investment patterns pertaining to different assumptions about regional productivity differences and transport cost levels are computed and compared, e.g. In terms of their dynamic employment developments. Their consequences for regional income differences are compared and an interpretation of the results in terms of competition between regions about investments is given. Finally, some comparisons with actual sector development in Sweden are given. /TRRL/

  • Corporate Authors:

    Royal Institute of Technology, Sweden

    Department of Mathematics
    Stockholm,   Sweden 
  • Authors:
    • Snickars, F
    • LUNDQVIST, L
  • Publication Date: 1978

Media Info

  • Features: Figures; References; Tables;
  • Pagination: 47 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00196958
  • Record Type: Publication
  • Source Agency: Swedish National Road and Transport Research Institute (VTI)
  • Report/Paper Numbers: Monograph
  • Files: ITRD, TRIS
  • Created Date: Sep 29 1979 12:00AM