RT info:eu-repo/semantics/article T1 Perpetuating regional asymmetries through income transfers A1 Morales, Jose Rodolfo K1 New Economic Geography K1 Dutch disease K1 Income transfers AB This paper studies the effect of income transfers on the distribution of economic activity through a modified FE model. The model incorporates some key features of the Dutch disease literature: sectorial mobility and non-tradable goods. If foreign competition is high (high trade openness), transfers could cause a Dutch disease in the short and long runs. For intermediate levels of foreign competition, Dutch disease appears only in the short run. And, for low levels, the recipient region always benefits from the income transfers.Additionally, when economies of scale are large, the transfers could perpetuate a core–periphery structure. PB ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD SN 1742-1772 YR 2020 FD 2020 LK https://uvadoc.uva.es/handle/10324/51701 UL https://uvadoc.uva.es/handle/10324/51701 LA spa NO Spatial Economic Analysis, 2020, vol. 16, n.1, p.73-96. NO Producción Científica DS UVaDOC RD 25-jun-2024