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Article
Publication date: 30 September 2020

Jagannath Mallick and Atsushi Fukumi

This study aims to explain the role of globalisation on the regional income growth disparities in the states of India and provinces in the People’s Republic of China (PRC).

Abstract

Purpose

This study aims to explain the role of globalisation on the regional income growth disparities in the states of India and provinces in the People’s Republic of China (PRC).

Design/methodology/approach

The authors use two approaches to analyse regional growth disparities: growth accounting and the panel spatial Durbin model.

Findings

The growth accounting shows that contributions of growth of capital intensity (GKI) and total factor productivity growth (TFPG) distinguish the high-income (HI) regions from medium-income (MI) and lower-income (LI) regions in India. In the PRC, the contributions of GKI and TFPG in MI regions are slightly higher than HI regions, but significantly higher than the LI regions. The empirical results find that foreign direct investment (FDI), domestic investment, human capital, and interaction of FDI and human capital explain income growth states/provinces in India and the PRC. A region’s income growth and FDI inflows spread the benefit to neighbourhoods in both countries.

Originality/value

The paper contributes by performing a comparative analysis of Indian states and the PRC’s provinces by capturing the neighbourhood effects of economic growth, FDI, investment and human capital and also the interaction effects of FDI with human capital and domestic investment. A comparison of the decomposition of income growth to the growth of factor inputs and efficiency in Indian states and the PRC’s provinces also adds to the existing literature.

Details

Indian Growth and Development Review, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 15 May 2017

Yi Sun, Chengjin Xu, Hailing Zhang and Zheng Wang

Climate change will have a significant impact on China’s potential agricultural production and change the distribution of the population in various regions of China, thus…

Abstract

Purpose

Climate change will have a significant impact on China’s potential agricultural production and change the distribution of the population in various regions of China, thus producing population migration. This paper aims to analyze China’s population migration in response to climate change and its socio-economic impact.

Design/methodology/approach

In this paper, the Potential Agriculture Production Index is introduced as an analytical tool with which to estimate the scale of the population migration induced by climate change. Also, this paper constructs a multi-regional computable general equilibrium (CGE) model and analyzes the effect of change in the population distribution pattern on regional economies, regional disparity and resident welfare.

Findings

The key finding of this paper is that, as a result of changes in potential agricultural production induced by climate change, the Circum-Bohai-Sea region, the industrialized region and the industrializing region, which are the main destination regions of the migrating population, will face a severe labor shortage. In response to population migration, the economic growth rate of the immigrating population regions has accelerated. Correspondingly, the economic growth rate of the emigrating population regions has decreased. In addition, the larger the scale of population migration is, the larger the economic impact is. Migration increases inner-regional disparity and decreases inter-regional disparity. However, overall regional disparity is only somewhat decreased.

Originality/value

This paper introduces a Potential Agriculture Production Index to estimate the scale of the population migration and introduce a multi-regional CGE model to analyze the correlated social-economic impacts.

Details

International Journal of Climate Change Strategies and Management, vol. 9 no. 03
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 1 June 2001

Serge Coulombe and Jean‐François Tremblay

Proposes an empirical analysis of regional convergence in Canada based on the growth model of Barro et al. In an open economy with perfect capital mobility, if domestic residents…

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Abstract

Proposes an empirical analysis of regional convergence in Canada based on the growth model of Barro et al. In an open economy with perfect capital mobility, if domestic residents cannot borrow abroad with human capital as collateral, the dynamics of human capital accumulation is the driving force of per capita income growth. Empirical results indicate that, as predicted by the theoretical model, various indicators of the stock of human capital did converge at the same speed as per capita income during the 1951‐1996 period. A substantial part of the relative growth of per capita income indicators across Canadian provinces since the early 1950s could be explained by the convergence process of human capital indicators based on the percentage of the population, both sexes and males, who have at least a university degree. The estimates of the human capital share in national income based on those indicators are in the neighbourhood of 0.5, a number consistent with other measures of the implicit income share of human capital. The convergence speed of per capita income at the regional level might have been two to three times faster, if all persons had invested in education at the same rate as the young.

Details

Journal of Economic Studies, vol. 28 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 30 September 2014

Gertrudes Saúde Guerreiro

Does the standard of living vary from region to region in Portugal and are spatial units in Portugal converging in income? We observe spatial error dependence between…

Abstract

Does the standard of living vary from region to region in Portugal and are spatial units in Portugal converging in income? We observe spatial error dependence between municipalities and estimate spatial econometric models to test convergence. For conditional convergence we conclude that primary sector employment, activity rate, and percentage of active population with higher education are important to distinguish the “steady state” of the regional economies, reflecting the labor market at regional level.

Details

Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting
Type: Book
ISBN: 978-1-78350-556-2

Keywords

Article
Publication date: 14 November 2023

Brenda Denise Dorpalen and Eirini Gallou

The first objective of this article is to analyse the reasons to pursue inclusive growth, that is economic growth accompanied by a reduction of social inequalities in different…

Abstract

Purpose

The first objective of this article is to analyse the reasons to pursue inclusive growth, that is economic growth accompanied by a reduction of social inequalities in different dimensions. The second objective of the article is to develop a systematised framework to understand the different channels and enablers by which heritage can contribute to inclusive growth through a review of specialised literature.

Design/methodology/approach

The methodology of this article is based on an exhaustive review of existing literature around models of economic development and their ability to decrease social inequalities. It critically reviews theoretical and empirical studies on existing economic approaches and links them with the heritage policy field.

Findings

The article finds that countries should pursue inclusive development since it is a fundamental condition for social cohesion, trust and society's overall well-being and because it enables economic growth to be sustainable through time. It also identifies four channels through which heritage can contribute to inclusive development: in its public good dimension, in its capacity to equalise opportunities, in its ability to reduce social, educational and health disparities and in its capacity to decrease spatial income inequalities through regeneration processes.

Research limitations/implications

The framework, that is developed to categorise the different channels and enablers through which heritage could contribute to inclusive growth, is not empirically tested. Further research could approach this by estimating a difference in difference model. However, data limitations could limit this objective in the short-term.

Originality/value

Its originality relies in the development of a conceptual framework that is aimed at shaping heritage policies that target, at the same time, the reduction of inequalities and economic growth.

Details

Journal of Cultural Heritage Management and Sustainable Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-1266

Keywords

Article
Publication date: 27 January 2023

Paulo Rogério Faustino Matos, Felipe Bastos, Hecirlane Martins and Leilyanne Viana

The purpose of this paper is discussing on cross-city empirical economic growth, by estimating an unbalanced dynamic panel for the most vulnerable region of Brazil.

Abstract

Purpose

The purpose of this paper is discussing on cross-city empirical economic growth, by estimating an unbalanced dynamic panel for the most vulnerable region of Brazil.

Design/methodology/approach

The authors propose including additional and specific sources of cross-city variation, enabling them to capture the essence and reality of this region. The sample selection is given by the solution of a trade-off on the number of cities and the available explanatory variables. Considering the final choice, the analysis is based on 6,452 observations extracted from a sample of 925 cities between 2009 and 2015. Reconciling the regional growth literature and this availability of observable data, the authors decide to explain cross-city real gross domestic product per capita in log, controlling for its lagged value besides 15 explanatory variables on human capital, financial system, business environment and social infrastructure.

Findings

This study uses growth drivers on human capital, financial system, business environment and social infrastructure. Considering 6,452 observations for the period from 2009 to 2015, this study finds a significant role played by the levels of education of formal workers, rural financing, real estate financing and FIRJAN indices (health and employment).

Research limitations/implications

A more comprehensive and complete understanding of cross-city variation, whether in the Northeast, in the North of the country or in other regions, involves the expansion of growth drivers in the model. Certainly, the impact of the industrial sector (not captured by the FIRJAN employment/income index), or programs and initiatives geared to technology, must be significant and positive. Despite the low market share, the insertion of microcredit data for informal, small business owners and more underserved families, can bring insights not measured in this article.

Practical implications

On financial system and development: The results on the significant and positive coefficient of rural and real estate financing are fundamental in conducting public policies aimed at granting credit. On human capital: The expected and intuitive relevant role of education suggests that good policies that are implementable need to be looked for and replicated to other northeastern cities. The state of Ceará seems to be that benchmark to be followed by the other states.

Social implications

Another public policy that needs to be strengthened so that the most vulnerable cities can grow is related to the partnership with the private sector in the expansion and maintenance of basic sanitation. In this context, the new Legal Framework for Basic Sanitation is an important step. Its main objective is to universalize and qualify the provision of services in the sector. Theoretically, it seems to be an important advance and this also unlocks the first big wave of investments.

Originality/value

The analysis aims to contribute to the recent studies on regional growth applied to Brazil. To the best of the authors’ knowledge, this is an innovative contribution, and the main differences between this paper and the others are the sample of cities, the period, the growth model and the estimation technique. For instance, Da Mata et al. (2005, 2007) explore population growth and its implications for economic dynamics and income generation among 123 urban agglomerations between 1970 and 2000. Alves (2021) studied slum growth in contemporary urbanization of households in 272 Brazilian cities from 1991 to 2010.

Book part
Publication date: 18 March 2014

Kerstin Enflo, Martin Henning and Lennart Schön

This paper uses a method devised by Geary and Stark to estimate regional GDPs for 24 Swedish provinces 1855–2000. In empirical tests, we find that the Swedish estimations yield…

Abstract

This paper uses a method devised by Geary and Stark to estimate regional GDPs for 24 Swedish provinces 1855–2000. In empirical tests, we find that the Swedish estimations yield results of good precision, comparable to those reported in the international literature. From the literature, we generate six expectations concerning the development of regional GDPs in Sweden. Using the GDP estimations, we test these expectations empirically. We find that the historical regional GDPs show a high correlation over time, but that the early industrialization process coevolved with a dramatic redistribution of productive capacity. We show that the regional inequalities in GDP per capita were at their lowest point in modern history in the early 1980s. However, while efficiency in the regional system has never been as equal, absolute regional differences in scale of production has increased dramatically over our investigated period. This process has especially benefited the metropolitan provinces. We present detailed sources of our estimations and also sketch a research agenda from our results.

Article
Publication date: 1 July 2002

Yanrui Wu

Regional disparities in China have recently attracted the attention of economists both inside and outside China. In particular, researchers and policy makers are concerned with…

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Abstract

Regional disparities in China have recently attracted the attention of economists both inside and outside China. In particular, researchers and policy makers are concerned with how economic reforms have affected regional disparities in China. As a result, there has been a boom in the literature. However, the exploding literature has so far presented conflicting results. The aim of this paper is to review the literature in this field and to present new evidence on income disparities in China’s regional economies. This study is based on the application of regional GDP figures covering the period of 1953‐1997. It attempts to assess and consolidate the findings from previous studies and hence contributes to the current debate.

Details

International Journal of Social Economics, vol. 29 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 24 August 2018

Muftau Olaiya Olarinde and Zakari Abdullahi Yahaya

The purpose of this study is to examine the role of institutions and policies on growth convergence in Africa.

Abstract

Purpose

The purpose of this study is to examine the role of institutions and policies on growth convergence in Africa.

Design/methodology/approach

This study uses different methods of panel modelling on a panel of 50 African Countries covering a period of 1990-2014.

Findings

The results confirmed the presence of conditional convergence among countries in the region. On the average, technology accumulation and fiscal policies indicators are positive function of growth, while human resources, monetary policies indicators and ineffective institutions partly necessitated by poor level of development negatively impact growth. The study concludes, though traditional growth variables and policies are imperative in achieving growth in income, they remain insufficient in an environment characterize by extractive and absolutist institutions. Therefore, institution remains the link that bridges the gap in between proper mix of resources and policies.

Research limitations/implications

Based on the results, policy-makers in the region should allocate certain percentage of their resources (on a sustainable basis) towards building a qualitative institution. Also, future studies on Africa should be focused on the rate at which poor level of economic development determines the quality of institutions which in turn impacts the level of growth in income.

Originality/value

The study contributes to the existing literature on institutional convergence with particular focus on African countries using system GMM to capture the endogeneity among the series.

Details

International Journal of Development Issues, vol. 17 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Open Access
Article
Publication date: 15 February 2024

Davi Bhering

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country…

Abstract

Purpose

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country. These variations in development can potentially render survey data inaccurate since the significance of capital income varies across the states. Besides, previous studies incorporating tax and national accounts data globally have mainly focused on measuring the income distribution at the country-level. This approach can limit the understanding of inequality, especially when considering large countries such as Brazil.

Design/methodology/approach

The methodology used to construct these estimates follows the guidelines of the Distributional National Accounts, whose core goal is to provide income distribution measures consistent with macroeconomic aggregates and harmonized across countries and time. The procedure has three main steps: first, it corrects the survey’s underrepresentation of top incomes using tax data. Then, it accounts for national income items not included in the survey or tax data, such as imputed rents and undistributed profits. Finally, it ensures that all components match the national income.

Findings

Compared to survey-based estimations, the results reveal a new angle on the state-level inequality. This study indicates that Amazonas, Rio de Janeiro and São Paulo have a more concentrated income distribution. The top 1\% of earners in these states receives around 28\% of total pre-tax income, while the top 10\% receive nearly 60\%. On the other end, Amapá (AP), Acre (AC), Rondônia (RO) and Santa Catarina (SC) are the states where the income distribution is less concentrated. There were no significant changes in the income distribution across the states during the period analyzed.

Originality/value

This study combines survey, tax and national accounts data to construct new estimates of Brazil’s state-level income distribution from 2006 to 2019. Previous results only considered income captured in surveys, which usually misses a significant part of capital incomes. This limitation may bias comparisons as capital income has different importance across the states. The new estimates represent the income of top groups more accurately, account for the entire national income and enable to compare regional inequality levels consistently with other countries.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

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