This paper investigates the economic impacts of regional integration on a small, less developed jurisdiction in a dynamic fiscal competition environment. The trade-offs between the economic benefits and the loss of policy flexibility resulting from integration are analyzed from the perspectives of fiscal revenue and GDP per capita. Our results show that the small jurisdiction's loss of flexibility in policymaking can dominate the other effects of integration. Specifically, if the small jurisdiction's efficiency in providing public inputs is originally sufficiently high (low), regional integration always reduces (improves) its net revenue, independently of the extent of efficiency improvement due to integration. However, when the small jurisdiction's efficiency is originally intermediate, the impact on net revenue crucially depends on the magnitude of the efficiency effect. Our analysis also characterizes the trade-offs resulting from integration between policy flexibility on the one hand and capital mobility and fiscal equalization on the other.

中文翻译：

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关于区域一体化、财政收入和人均GDP

本文研究了在动态财政竞争环境中区域一体化对小型、欠发达地区的经济影响。从财政收入和人均GDP的角度分析了一体化带来的经济效益和政策灵活性损失之间的取舍。我们的研究结果表明，小型司法管辖区在决策中失去灵活性可以主导整合的其他影响。具体来说，如果小辖区在提供公共投入方面的效率原本就足够高（低），那么区域一体化总是会减少（提高）其净收入，而与一体化带来的效率提高程度无关。但是，当小辖区的效率本来是中等的时，对净收入的影响主要取决于效率效应的大小。我们的分析还描述了一方面政策灵活性与另一方面资本流动性和财政均衡化相结合所产生的权衡取舍。