
doi: 10.2139/ssrn.296947
handle: 10419/19343
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.
growth, O41, Neue ökonomische Geographie, Wachstumstheorie, Vereinigte Staaten, Japan, Agglomerationseffekt, new economic geography, F12, threshold estimation, bootstrap, regime shifts, threshold estimation,new economic geography,regional income,growth,poverty trap,regime shifts,bootstrap, ddc:330, R11, Regionale Disparität, Regionales Wachstum, threshold estimation, economic geography, regional income convergence, poverty trap, regime shifts, bootstrap [Keywords], regional income, Kern-Peripherie-Beziehung, poverty trap, EU-Staaten, poverty trap model, Entwicklungskonvergenz, jel: jel:O41, jel: jel:F12, jel: jel:R11
growth, O41, Neue ökonomische Geographie, Wachstumstheorie, Vereinigte Staaten, Japan, Agglomerationseffekt, new economic geography, F12, threshold estimation, bootstrap, regime shifts, threshold estimation,new economic geography,regional income,growth,poverty trap,regime shifts,bootstrap, ddc:330, R11, Regionale Disparität, Regionales Wachstum, threshold estimation, economic geography, regional income convergence, poverty trap, regime shifts, bootstrap [Keywords], regional income, Kern-Peripherie-Beziehung, poverty trap, EU-Staaten, poverty trap model, Entwicklungskonvergenz, jel: jel:O41, jel: jel:F12, jel: jel:R11
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