Issue 2

Regional disparities in economic performance both within and between the Member States of the EU are immense. These regional disparities have led to economic and social problems which policy makers have felt necessary to address. Considerable experience has-been gained with various forms of regional policy in the individual Member States of the EU and the EU has itself gained valuable experience in developing its own EU-wide regional policy. After discussing the case for reducing regional economic disparities, this paper reviews current EU regional policy and argues that this needs to be strengthened greatly if regional disparities in economic performance are to be seriously addressed.

JIM TAYLOR

Page Number - 103

The role of regional interaction in multi-regional growth is examined by estimating the parameters for a discrete nonlinear model of relative dynamics with maximum likelihood methods. This model specification approaches the issues of spatial dependence in a different form from the methods that have been used to date. It provides evidence for the view of multiregional growth as a zero-sum game, in which a mixed pattern of competition and complementarity exists among non-contiguous regions. The approach is illustrated with an aggregate set of regions for the U.S. economy and forecasts are made of the progress of regional convergence into the next century. It is suggested the methodology might prove to be useful alternative to the usual method of incorporating exogenous changes into regional models.

GEOFFREY J.D. HEWINGS, MICHAEL SONIS, FEDERICO A. CUELLO, FAYCAL MANSOURI

Page Number - 133

This paper examines the link between unemployment and crime within the context of an expected-utility model to explain optimal choices between legal and illegal activities. It is shown that the outcome of this choice depends upon the type of unemployment that is being considered, with criminal activity more likely to be the result of long-term unemployment than of short-term unemployment. The model used annual data for the 12 standard regions of Britain over the period 1983 to 1992. The results identified unemployment and lack of school-leaving qualifications as factors leading people into crime and the success of the police in clearing up crime as a factor deterring people from entering crime. These sets of factors may therefore be viewed, respectively, as factors pushing people towards, and pulling them away from, criminal activity.

VANI K. BOROOAH, GRAINNE COLLINS

Page Number - 151

This article considers whether a Belfast-Dublin Economic Corridor would be a road to prosperity for the economies of the Northern Ireland (NI) and Republic of Ireland (ROI)) or whether it in fact represents more of a distraction from the basic lack of competitiveness in many sectors of both economies. The analysis, which focuses on the economic aspects of the issue, concludes that a Belfast-Dublin economic Corridor may represent yet another expedient in a long line of last best hopes for the Irish economies, all of which failed to realise the high hopes vested in them. The economic gains which can be realistically expected should not be exaggerated.

D.M.W.N. HITCHENS, J.E. BIRNIE

Page Number - 167

In this study the com trade in the Philippines is examined using a spatial equilibrium framework in an attempt to quantify the effects of simulating an improvement in the flow of corn within the Philippines. In the analysis trade flows between the spatially and temporally separated markets are quantified. In addition, the implications of processing corn in the southern producing region of Mindanao are discussed and the effects on producers and consumers surplus determined. Central to this study is the partial comparison of transporting unprocessed and processed corn and the change this has on the economic welfare of both producers and consumers. Supply and demand functions are derived for two time periods using estimates of elasticities from various secondary sources. It was found that inter-regional and inter-temporal trade between the regions, along with producers and consumers surpluses, would increase if it were possible to process and transport corn. It is concluded that the processing of com in Mindanao is warranted if the proper infrastructure and government policies are in place.

R.A. VILLANO, M.L. DRILON, B. DAVIDSON

Page Number - 189

Unprecedented concern for the fate of the world's tropical rainforests has been promoted during the past decade. Food and Agriculture Organisation assessments of world forest resources have indicated an average annual deforestation during the 1980s of 15.4 million hectares or a compound rate of deforestation of 0.8 per cent. This suggests that little, if any, progress has been made in sustainable management of natural old growth forests. The relevant issue of concern in this paper is that in Indonesia, with particular reference to the timber industry, there is neither environmental nor economic sustainability. From either an anthropocentric perspective which is fundamentally human centred, or a biocentric view which is ecologically focused, tropical rainforests are disappearing to the detriment of all species and the earth's ecological integrity in general. This paper argues from an anthropocentric-economic world view that the tropical rainforests in Indonesia have been used inefficiently and contrary to distributive justice. Because of this, it is not necessary to show that a biocentric world view or ecological perspective is being violated because unless the tropical timber is at the very least utilise d efficiently, it should remain untouched by any other criteria. Unti l tropical rainforests are used for the benefit of those who most need developmental assistance in a technically and allocatively efficient manner, any argument between different world views or methodological perspectives is premature.

HERB THOMPSON, JAMES DUGGIE

Page Number - 209