Towards a double bell theory of regional disparities

Abstract

Despite the large attention given to regional disparities, a conceptual framework simultaneously linking the inter- and intra-regional development processes over time is still missing. A vast set of empirical analyses on their trends indeed exists. In most cases, it witnesses the presence of the famous Williamson’s inverted U-shaped relation between GDP per capita and regional income inequalities, and of its augmented shape where the inverted U turns upward again at later stages of development. The paper has the aim to present a conceptual framework on the interlinkages between inter- and intra-regional disparity trends, highlighting the influence that one exerts over the other. It does so claiming that their joint analysis can provide an explanation of situations “against conventional wisdom” and can overcome the simplistic idea that if inter-regional convergence occurs, social equity is achieved. Empirical evidence is provided in the case of European regions. The paper has a normative value, in that an interpretation of the concurrent inequality trends at different levels can lead to more efficient normative interventions, avoiding misallocation of financial resources at sub-regional level.