Lagging regions and development strategies: The case of Peru
Despite the economic transformation of Peru’s coastal economy, the country’s inland region remains poor and underdeveloped. We herein examine the economic linkages between the two regions using a multi-regional computable general equilibrium model based on a regionalized social accounting matrix. Th...
| Main Authors: | , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2009
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/161906 |
| _version_ | 1855526979592257536 |
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| author | Thurlow, James Morley, Samuel Nin-Pratt, Alejandro |
| author_browse | Morley, Samuel Nin-Pratt, Alejandro Thurlow, James |
| author_facet | Thurlow, James Morley, Samuel Nin-Pratt, Alejandro |
| author_sort | Thurlow, James |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Despite the economic transformation of Peru’s coastal economy, the country’s inland region remains poor and underdeveloped. We herein examine the economic linkages between the two regions using a multi-regional computable general equilibrium model based on a regionalized social accounting matrix. The model results show that coastal growth undermines the inland economy by increasing import competition and internal migration. Peru, therefore, cannot rely solely on rapid national growth to generate broad-based poverty reduction. When we simulate policies aimed at curbing divergence, we find that reducing interregional transaction costs stimulates national economic growth, but widens divergence by shifting inland production towards agriculture and concentrating investment in coastal manufacturing. In contrast, conditional cash transfers reduce regional and rural-urban inequality, but do not stimulate national growth. Finally, investing in inland productivity (through extension services and improved rural roads) reduces regional divergence, but the resulting market constraints worsen rural-urban inequality. These findings suggest that isolated interventions may worsen inequality, and that complementarities exist between supply-side investments and policies aimed at stimulating demand and improving access to national markets. |
| format | Artículo preliminar |
| id | CGSpace161906 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2009 |
| publishDateRange | 2009 |
| publishDateSort | 2009 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1619062025-11-06T06:23:30Z Lagging regions and development strategies: The case of Peru Thurlow, James Morley, Samuel Nin-Pratt, Alejandro regional development public expenditure economic growth development policies Despite the economic transformation of Peru’s coastal economy, the country’s inland region remains poor and underdeveloped. We herein examine the economic linkages between the two regions using a multi-regional computable general equilibrium model based on a regionalized social accounting matrix. The model results show that coastal growth undermines the inland economy by increasing import competition and internal migration. Peru, therefore, cannot rely solely on rapid national growth to generate broad-based poverty reduction. When we simulate policies aimed at curbing divergence, we find that reducing interregional transaction costs stimulates national economic growth, but widens divergence by shifting inland production towards agriculture and concentrating investment in coastal manufacturing. In contrast, conditional cash transfers reduce regional and rural-urban inequality, but do not stimulate national growth. Finally, investing in inland productivity (through extension services and improved rural roads) reduces regional divergence, but the resulting market constraints worsen rural-urban inequality. These findings suggest that isolated interventions may worsen inequality, and that complementarities exist between supply-side investments and policies aimed at stimulating demand and improving access to national markets. 2009 2024-11-21T09:59:20Z 2024-11-21T09:59:20Z Working Paper https://hdl.handle.net/10568/161906 en Open Access application/pdf International Food Policy Research Institute Thurlow, James; Morley, Samuel; Nin-Pratt, Alejandro. 2009. Lagging regions and development strategies. IFPRI Discussion Paper 898. https://hdl.handle.net/10568/161906 |
| spellingShingle | regional development public expenditure economic growth development policies Thurlow, James Morley, Samuel Nin-Pratt, Alejandro Lagging regions and development strategies: The case of Peru |
| title | Lagging regions and development strategies: The case of Peru |
| title_full | Lagging regions and development strategies: The case of Peru |
| title_fullStr | Lagging regions and development strategies: The case of Peru |
| title_full_unstemmed | Lagging regions and development strategies: The case of Peru |
| title_short | Lagging regions and development strategies: The case of Peru |
| title_sort | lagging regions and development strategies the case of peru |
| topic | regional development public expenditure economic growth development policies |
| url | https://hdl.handle.net/10568/161906 |
| work_keys_str_mv | AT thurlowjames laggingregionsanddevelopmentstrategiesthecaseofperu AT morleysamuel laggingregionsanddevelopmentstrategiesthecaseofperu AT ninprattalejandro laggingregionsanddevelopmentstrategiesthecaseofperu |