Agglomeration and Institutional Effects on Dynamics in Regional Disparities: Experience from Poland and Japan
Poland and Japan, there were quite different characteristics in terms of economic system. Since drastic change of economic system in Poland in 1989, increase of economic disparities in terms of unemployment rates across regions was remarkable, probably due to the spatially deviated foreign direct investment. However, in recent years we can also observe a tendency of divergence in regional economic disparities in NUTS 2 level. Turning to Japanese regions, inter-regional income disparities is expanding since 2001 while in 1990s Japanese economies were strongly suffered from the Bubble burst. Japanese central government is now thinking about the reformulation of regional (local) governments, called prefectures. At this point, it is worthwhile to examine dynamics in regional disparities of two countries by comparing quantitatively regional institutional systems as well as economic situations. With regard to convergence/divergence model in the sense of Barro and Sala-i-Martin, there are few studies which incorporate agglomeration effects. We try to explain the dynamics of interregional disparities by institutional factors, which are different between two countries, as well as economic factors. The estimation model starts from defining regional production function, and we propose a new estimation model and implement estimation with regional time-series and cross-section data of Poland and Japan. Finally, we would like to refer to some policy implications for desirable regional economic system. (original abstract)
- Allington N.F.B. and McCombie J.S.L., 2007, 'Economic growth and beta-convergence in the east European transition economies,' in Arestis eds. Economic Growth: New Direction in Theory and Policy, Edward Elgar, Massachusetts.
- Armstrong H.W., 1995, 'Convergence among regions of the European Union, 1950-1990', Papers in Reg. Sci., 74, 143-152.
- Badinger, H et al., 2004, 'Regional convergence in the European Union, 1985-1999: A Spatial Dynamic Panel Analysis,' Regional Studies, 38, 3, 241-253, 2004 (2003).
- Barro R. and Sala-i-Martin X., 1996, 'Regional cohesion: Evidence and theories of regional growth and convergence,' European Econ. Rev., 40, 1325-1352.
- Barro R. and Sala-i-Martin X., 2004, Economic Growth, 2nd Edn. MIT Press, Cambridge, MA.
- Battisiti M. and Di Vaio G., 2008, 'A spatially filtered mixture of b-convergence regression for EU regions, 1980-2002,' Emp. Econ., 34, 105-121.
- Carluer F. and Gaulier G., 2005, 'The impact of convergence in the industrial mix on regional comparative growth: Empirical evidence from the French case,' Ann. Reg. Sci., 39, 85-105.
- Crihfield J.B., J.F. Giertz, and S. Mehta, 1995, 'Economic growth in the American States: the end of convergence?,' The Quart. Rev. of Econ. and Finance, 35, 551-577
- Chrihfield J.B. and Panggbean M.P.H., 1995, Growth and convergence in U.S. cities,' J. Urban Econ., 38, 138-165.
- Christopoulos D.K. and Tsionas E., 2004, 'Convergence and regional productivity differences: evidence from Greek prefectures,' Ann. Reg. Sci., 38(3), 387-396.
- Coulombe S., 2007, 'Globalization and Regional Disparity: A Canadian case study,' Reg. Studies, 41, 1-17.
- de la Fuente A., 2002, 'On the source of convergence: A close look at the Spanish regions, 'European Econ. Rev., 46, 569-599.
- Desmet K. and Fafchamps M., 2006, 'Employment concentration across U.S. counties,' Reg. Sci. Urban. Econ., 36, 482-509.
- Funke M. and Strulik H., 1999, 'Regional growth in West Germany: convergence ordivergence?,' Econo. Modelling, 16, 489-502.
- Hammond G.W., 2006, 'A time series analysis of U.S. metropolitan and non-metropolitan income divergence,' Ann. Reg. Sci., 40, 8-94.
- Helliwell J.F., 'Convergence and migration among Provinces,' Canadian Journal of Economics, 29, S324-S330, 1996.
- Henley A., 2005, 'On regional growth convergence in Great Britain,' Reg. Studies, 39,1245-1260.
- Kirdar M. and Saracoglu D.S., 2008, 'Migration and regional convergence: An empirical investigation for Turkey,' Papers in Reg. Sci., 87, 545-567.
- Kosfeld R. et al., 2006, 'Regional productivity and income convergence in the United Germany, 1992-2000,' Reg. Studies, 40, 755-767.
- Lall S.V. and Yilmaz S., 2001, 'Regional economic convergence: Do policy instruments make a difference?,' Ann. Reg. Sci., 35, 153-166.
- Miller J.R. and Genc I., 2005, 'Alternative regional specification and convergence of U.S. regional growth rates,' Ann. Reg. Sci., 39, 241-253.
- Nijkamp P. and Poot J., 1998, 'Spatial perspectives on new theories of economic growth,' Ann. Reg. Sci., 32, 7-37.
- Terrasi M., 1999, 'Convergence and divergence across Italian regions,' Ann. Reg. Sci.,33, 491-510.
- Wang Z. and Z. Ge, 2004, 'Convergence and transition auspice of Chinese regional growth,' Ann. Reg. Sci., 38, 727-739.
- Webber D.J. and White P., 2003, 'Regional Factor price convergence across four major European countries,' Reg. Studies, 37, 773-782.