Regional disparities in GDP per capita are large and persistent

2011 ◽  
Vol 17 (3) ◽  
pp. 501-518 ◽  
Author(s):  
Michal Tvrdoň ◽  
Karel Skokan

Real convergence of countries within European Union is measured mostly at the national level by the indicator of gross domestic product (GDP) per capita. Generally, countries with relatively low GDP per capita should catch-up with richer ones and this has become the main objective of post-communist countries at the beginning of the transition process. However, when we look at the regional level and regional GDP per capita data in these countries one can assume that the intensity of real convergence strongly differs among regions and disparities between regions still prevail. The paper attempts to identify factors responsible for persistence of regional disparities in the Visegrad Four countries. In the paper, available Eurostat NUTS 3 statistical data were used for analysis of economic disparities development in the Czech Republic, Hungary, Poland and Slovakia. The paper has two main parts. In the first theoretical part approaches to regional disparities and their measurement on the basis of indexes are provided. The second, empirical, part contains description of the main trends in regional development of Visegrad Four countries. This is followed by comparison of these trends in the Visegrad Four regions. Calculations suggested conclusion that the regional disparities between regions are growing. Santrauka Tikroji Europos Sajungos šalių konvergencija nacionaliniu lygiu dažniausiai matuojama bendruoju vidaus produktu (BVP), tenkančiu vienam gyventojui. Apskritai pagrindinis pokomunistinių šalių tikslas pereinamojo proceso pradžioje – pasivyti turtingesnes šalis pagal BVP vienam gyventojui. Tačiau pažvelgus į duomenis, matyti, kad regioninių skirtumų vis dar yra. Straipsnyje siekiama nustatyti veiksnius, nuo kurių priklauso keturių Vyšegrado šalių regioniniai skirtumai. Šiame straipsnyje, naudojant ”Eurostat“ NUTS statistinius duomenis, buvo analizuojami Čekijos, Vengrijos, Lenkijos ir Slovakijos ekonominio vystymosi skirtumai. Straipsnis padalytas į dvi pagrindines dalis: pirmojoje dalyje išdėstyti regioninių skirtumų matavimo pagrindai, antrojoje, empirinėje, dalyje aprašomos pagrindinės keturių Vyšegrado šalių regioninės plėtros tendencijos. Šios tendencijos palygintos. Skaičiavimai atskleidė, kad regioniniai skirtumai didėja.


Author(s):  
Petr Blížkovský

This paper analyses the levels and trends of regional disparity and convergence in the two American macro-regions, NAFTA and MERCOSUR. In the case of NAFTA, 95 micro-regions were analysed (12 in Canada; 32 in Mexico; 51 states in the US). In MERCOSUR, the regions are represented by four countries (Argentina, Brazil, Paraguay and Uruguay). The analysis covers the period 2000–2008 (or rather 2000 to 2005 for Mexico). The regional disparities were calculated with the Gini coefficient based on nominal GDP, GDP per capita and GDP per capita PPS. Convergence analysis was done with the Disparity Range Coefficient (DRC), the Average Disparity Range Coefficient (ADRC), σ- convergence and β-convergence. The results of regional disparity were as follows. Based on the nominal GDP, it was at high levels in both macro-regions, with a Gini coefficient above 0.55. With the disparities calculated on GDP per capita, the level of regional disparity in both macro-regions was lower at 0.36 in NAFTA and 0.28 in MERCOSUR in 2000. Based on GDP per capita in PPP, the levels were lower than based on the GDP per capita analysis starting at 0.31 in NAFTA and 0.16 in MERCOSUR. The disparities further decreased by half in NAFTA while slightly increasing in MERSCOSUR. The convergence analysis results based on the DRC analysis showed that neither NAFTA nor MERCOSUR regions converged. The speed of divergence varied significantly. The disparities among the richest and poorest regions in GDP per capita increased 6.26 times more than the average GDP per capita in PPP in NAFTA as a whole. It was only 0.52 in MERCOSUR. The ADRC analysis also resulted in divergence trends for both macro-regions but with lower rates. Convergence calculated with the σ- convergence analysis confirmed that both macro-regions diverged. The divergence rate for NAFTA was 1.41% and for MERCOSUR 0.74. Calculated with the β-convergence analysis, the NAFTA region showed a status quo (convergence of 0.01%) and a divergence trend was registered for MERCOSUR (0.99%). At the country level, the micro-regions in Canada were diverging (1.62% per year) while the ones in the US and Mexico converging (0.02% and 0.77%, respectively).


2018 ◽  
Vol 37 (4) ◽  
pp. 99-110 ◽  
Author(s):  
Barraí Hennebry

Abstract This paper focuses on the increasing regional disparities in Ireland, especially since the great recession and assesses the degree to which the recovery has been concentrated in urban areas. Ireland was initially affected by the recession to a greater extent than other countries but has recovered strongly. However, this recovery has not been evenly distributed, with some regions showing greater economic resilience. Using descriptive statistics of GDP per capita (PPP), GVA and employment, this paper examines the extent to which the recovery has been a two-tier recovery. The paper finds evidence to suggest that the recovery has been heavily concentrated in Dublin, and to a lesser extent in Cork and Galway, resulting in an urban-rural divide.


2015 ◽  
pp. 30-53
Author(s):  
V. Popov

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.


2018 ◽  
pp. 71-91 ◽  
Author(s):  
I. L. Lyubimov ◽  
M. V. Lysyuk ◽  
M. A. Gvozdeva

Well-established results indicate that export diversification might be a better growth strategy for an emerging economy as long as its GDP per capita level is smaller than an empirically defined threshold. As average incomes in Russian regions are likely to be far below the threshold, it might be important to estimate their diversification potential. The paper discusses the Atlas of economic complexity for Russian regions created to visualize regional export baskets, to estimate their complexity and evaluate regional export potential. The paper’s results are consistent with previous findings: the complexity of export is substantially higher and diversification potential is larger in western and central regions of Russia. Their export potential might become larger if western and central regions, first, try to join global value added chains and second, cooperate and develop joint diversification strategies. Northern and eastern regions are by contrast much less complex and their diversification potential is small.


2008 ◽  
pp. 94-109 ◽  
Author(s):  
D. Sorokin

The problem of the Russian economy’s growth rates is considered in the article in the context of Russia’s backwardness regarding GDP per capita in comparison with the developed countries. The author stresses the urgency of modernization of the real sector of the economy and the recovery of the country’s human capital. For reaching these goals short- or mid-term programs are not sufficient. Economic policy needs a long-term (15-20 years) strategy, otherwise Russia will be condemned to economic inertia and multiplying structural disproportions.


2019 ◽  
Author(s):  
Joses Kirigia ◽  
Rose Nabi Deborah Karimi Muthuri

<div>A variant of human capital (or net output) analytical framework was applied to monetarily value DALYs lost from 166 diseases and injuries. The monetary value of each of the 166 diseases (or injuries) was obtained through multiplication of the net 2019 GDP per capita for Kenya by the number of DALYs lost from each specific cause. Where net GDP per capita was calculated by subtracting current health expenditure from the GDP per capita. </div><div> </div><p>The DALYs data for the 166 causes were from IHME (Global Burden of Disease Collaborative Network, 2018), GDP per capita data from the International Monetary Fund world economic outlook database (International Monetary Fund, 2019), and the current health expenditure per person data from the WHO Global Health Expenditure Database (World Health Organization, 2019b). A model consisting of fourteen equations was calculated with Excel Software developed by Microsoft (New York).</p><p> </p>


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