Divergence - is it Geography?
This paper tests directly a geography and growth model using regional data for Europe, the US, and Japan during different time periods. We set up a standard geography and growth model with a poverty trap and derive a log-linearized growth equation that corresponds directly to a threshold regression technique in econometrics. In particular, we test whether regions with high population density (centers) grow faster and have a permanently higher per capita income than regions with low population density (peripheries). We find geography driven divergence for US states and European regions after 1980. Population density is superior in explaining divergence to initial income which the most important official EU eligibility criterium for regional aid is built on. Divergence is stronger on smaller regional units (NUTS3) than on larger ones (NUTS2). Thus, the wavelength of agglomeration forces seems to be rather small in Europe. Human capital and R&D are transmission channels of divergence processes. Human capital based poverty trap models are an alternative explanation for regional poverty traps
Year of publication: |
2002
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Authors: | Urban, Dieter M. ; Straubhaar, Thomas ; Suhrcke, Marc |
Publisher: |
[S.l.] : SSRN |
Subject: | Räumliche Verteilung | Spatial distribution | Wirtschaftliche Konvergenz | Economic convergence | EU-Staaten | EU countries | Zentrum-Peripherie-Beziehungen | Centre-periphery relations | Japan | Neue ökonomische Geographie | New economic geography | Regionales Wachstum | Regional growth | Wachstumstheorie | Growth theory | Agglomerationseffekt | Agglomeration effect |
Saved in:
freely available
Extent: | 1 Online-Ressource (45 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2001 erstellt |
Other identifiers: | 10.2139/ssrn.296947 [DOI] |
Classification: | O41 - One, Two, and Multisector Growth Models ; R11 - Regional Economic Activity: Growth, Development, and Changes ; F12 - Models of Trade with Imperfect Competition and Scale Economies |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014121343