Arbeitspapier

Divergence – Is it geography?

This paper tests a geography and growth model using regional data for Europe, the US, and Japan. 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 compared 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). Human capital and R&D are likely candidates for transmission channels of divergence processes.

Sprache
Englisch

Erschienen in
Series: HWWA Discussion Paper ; No. 181

Klassifikation
Wirtschaft
One, Two, and Multisector Growth Models
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Thema
threshold estimation
new economic geography
regional income
growth
poverty trap
regime shifts
bootstrap
Regionale Disparität
Regionales Wachstum
Neue ökonomische Geographie
Kern-Peripherie-Beziehung
Entwicklungskonvergenz
Wachstumstheorie
Agglomerationseffekt
EU-Staaten
Vereinigte Staaten
Japan
poverty trap model

Ereignis
Geistige Schöpfung
(wer)
Straubhaar, Thomas
Suhrcke, Marc
Urban, Dieter M.
Ereignis
Veröffentlichung
(wer)
Hamburg Institute of International Economics (HWWA)
(wo)
Hamburg
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Straubhaar, Thomas
  • Suhrcke, Marc
  • Urban, Dieter M.
  • Hamburg Institute of International Economics (HWWA)

Entstanden

  • 2002

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