Fenin K.V.Published in:
Journal of International Economic Affairs
– Volume 9, Number 1 (January-March 2019)

JEL classification: D63, F69, R13

Keywords: «flat world» approach, «voluminous world» approach, dynamics, territorial economic inequality


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Abstract:

This article contains an analysis of main economic theories and models that form the basis of two approaches to the problem of describing, explaining and predicting the dynamics of territorial (global, intercountry, national and local) economic inequality. The study of the first approach (the «flat world» approach), based on the classical and neoclassical theories of the international division of labor and world trade, the Marx’s theory, the Chelintsev’s concept of the development of agricultural areas, models of innovation diffusion of T. Hägerstrand and H. Giesch, made it possible to reduce its main content to the thesis of a gradual convergence, i.e. the movement from an economically heterogeneous to a uniformly developed world. The study of the second approach (the «voluminous world» approach), combining the concept of Serra, the theory of von Thünen, the theory Weber, Myrdal’s scientific views, Krugman’s aggregated formal mathematical model, to reduce its main content to the idea of the periodical reproduction of territorial and economic inequalities between states and their regions. Preservation over long historical intervals and periodic growth of the scale of territorial economic inequality indicate that the theories of the «flat world» approach are more relevant.

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