Who Replaces Agriculture's Contribution to Settlement in Lagging Rural Areas? An Integrated Input-Output and Dynamic Simulation Analysis

This paper develops an integrated model for analysing regional economic development and structural change in agriculture. The input-output method allows the detailed description of a regional economy. Based on this description, regional growth pole sectors can be identified that are potential leverage points for growth oriented development strategies. Dynamic simulation tests the long term effects of such a development strategy. Model results show that external demand is the main driving force behind regional economic growth. However, development strategies for lagging rural areas have to be coupled to development strategies for regional centres. Only if the rural areas surrounding regional centres become an important asset for the development of these centres can rural areas be stabilised.rural regions, economic development, input-output, dynamic simulation, Community/Rural/Urban Development, C6, R11, R15, R23, R58,

The impact of regional financial development on economic growth in Beijing-Tianjin-Hebei region:a spatial econometric analysis

The Beijing–Tianjin–Hebei (BTH) integration project in China is ambitious which offers great potential with its promotion of sustainable and inclusive development. This study investigates the impact of regional financial development on economic growth in the BTH region, with panel data collected from 2007 to 2016. Two indicators namely, CREDIT (denoted as regional financial development depth) and BRANCH (denoted as regional financial intermediaries accessibility) are used to construct an integrated regional financial development indicator through the spatial econometrics approach. The spatio-temporal distribution characteristics of regional financial development and economic growth are analyzed. Afterward, the global Moran’s I and local Getis–Ord Gi* statistics are applied to detect the presence of spatial autocorrelation. Finally, a spatial Durbin model (SDM) is utilized to examine spatial distribution and spatial association. The research findings of this study suggest that the CREDIT has a positive effect on regional economic growth, while the BRANCH has no impact on regional economic growth. Moreover, it is found that the spatial autocorrelation of CREDIT and BRANCH are statistically significant. The CREDIT of the neighboring areas has a negative spatial spillover effect on economic growth of one area, while the BRANCH in the neighboring areas has a positive effect on the one area. The results and research findings reported in this article highlight the role of regional financial development in improving the economic growth not only for Chinese policy makers but also for other countries’ researchers and practitioners in this field

Description and spatial analysis of employment change in New Zealand regions 1986-2001

Over the last two decades New Zealand has undergone fundamental economic restructuring, and phases of slow and rapid growth, which have resulted in some dramatic changes in the regional economies. This paper provides a detailed multiperiod shift-share analysis over three intercensal periods between 1986 and 2001 on changes in regional employment outcomes at two levels of spatial disaggregation: 29 Administrative Regions (ARs), based on Regional Council areas, and 58 Labour Market Areas (LMAs) that have economically meaningful (commuting determined) boundaries. The contributions to employment outcomes of national trends, sectoral composition within regions, structural change, and local conditions are identified. A four-category disaggregation of regional employment into sex, age, occupation and industry is also undertaken. The results show a dichotomy between metropolitan and non-metropolitan areas, but also several distinct clusters among the latter. Regional competitive advantage is clearly linked with net inward migration. There is also evidence of significantly positive spatial autocorrelation in the competitive effect. Local indicators of spatial association help to identify regions that stand out in terms of being surrounded by similar regions, or by regions that are just the opposite, in terms of the competitive effect. Interestingly, regional population growth precedes the competitive component of employment growth rather than just being a symptom of it

Diversity, stability and regional growth in the U.S. (1975-2002)

This paper summarizes the theoretical arguments from evolutionary theory and ecological economics to put the trade-off between regional economic diversity and regional economic growth on stronger theoretical foundations. Hypotheses are tested using an empirical model that links regional economic diversity to stability and growth using data on 177 BEA areas of the continental United States during the period (1975-2002).evolutionary economics, ecological economies, diversity, stbility, regional growth

An assessment of EU Cohesion Policy in the UK regions: direct effects and the dividend of targeting. LEQS Discussion Paper No. 135/2018 June 2018

With the prospective exit of the UK from the European Union, a crucial question is whether EU Structural Funds have been beneficial for the country and which aspects of Cohesion Policy should be maintained if EU funds are to be replaced. This paper addresses this question through a twofold investigation, assessing not only whether but also how EU funds have contributed to regional growth in the UK over three programming periods from 1994 to 2013. We document a significant and robust effect of Cohesion Policy in the UK, with higher proportions of Structural Funds associated to higher economic growth both on the whole and particularly in the less developed regions of the country. In addition, we show that the strategic orientation of investments also plays a distinct role for regional growth. While concentration of investments on specific pillars seems to have no direct growth effects, unless regions can rely on pre-existing competitive advantages in key development areas, we unveil clear evidence that targeting investments on specific areas of relative regional need has a significant and autonomous effect on growth. These findings have important implications for the design of regional policy interventions in Britain after Brexit

CREDIT, VENTURE CAPITAL AND REGIONAL ECONOMIC GROWTH

In this paper we investigate the relationship between finance and regional economic growth. The dataset consists of a panel of 53 regions belonging to three countries, Germany, Italy and Spain, for the period 1995-2008. To avoid a problem of endogeneity, we estimate a dynamic panel using the generalised method of moments (GMM). The results underline the important role played by bank lending in regional economic growth. The distinction between mutual and commercial credit suggests that both types of bank are important for regional growth but the role of mutual banks is greater in economically deprived areas [EDAs]. Similar results are obtained for the venture capital variableregional economic growth, relationship lending, venture capital, economically deprived areas, dynamic panel techniques

Growth, poverty, and inequality : a regional panel for Bangladesh

Most empirical work on how growth affects poverty and inequality has been based on international panel data sets. Panels can also be used within a country, if the analysis is carried out at the regional level. The author does this for Bangladesh, where regional panel estimates indicate that growth reduces poverty in both urban and rural areas. Growth is associated with rising inequality only in urban areas. Simulations based on these estimates indicate how much poverty reduction could increase in the next 10 years if growth were promoted in rural areas rather than urban areas.Services&Transfers to Poor,Economic Conditions and Volatility,Public Health Promotion,Health Monitoring&Evaluation,Environmental Economics&Policies,Governance Indicators,Poverty Assessment,Services&Transfers to Poor,Rural Poverty Reduction,Achieving Shared Growth

Components of regional population growth, 1986-2001

The vitality of a region is frequently assessed by looking at its population growth pattern. This is seen as being linked to its economic and social vibrancy. To better understand the dynamics of this growth pattern it is necessary to decompose population growth into the contributions of natural increase (births less deaths) and migration (both domestic and international). This provides a demographic accounting of the factors of population change which we use to analyse the degree to which the levels and impacts of these factors differ between the Regional Council Areas of New Zealand. We find large variations between Regional Council Areas in overall population growth for the three quinquennia between 1986 and 2001. The Auckland region experienced the largest growth, coming both from high natural increase and international migration, while the “sunbelt” regions of Bay of Plenty, Nelson-Tasman and Marlborough had high growth, but driven by internal migration. In other regions, such as Gisborne, West Coast and Southland population growth declined

What’s In a City?: Understanding the Micro-Level Employer Dynamics Underlying Urban Growth

This paper synthesizes the literatures on labor dynamics and urban growth and agglomeration by presenting new evidence on the micro-level establishment dynamics of metropolitan areas. I explore how the patterns of job reallocation and entry and exit affect the growth and composition of these areas. I find that high-growth metropolitan areas have high rates of job and establishment turnover, primarily though higher rates of gross job creation and establishment entry, and have a relatively young distribution of establishments. Variations in the age distribution and differences in the entry and exit patterns of young establishments account for a sizeable portion of regional differences in labor dynamics and growth, even after controlling for regional differences in industry composition. These results suggest that variations in the age distribution and the dynamics that lead to such variations are important factors in understanding urban growth and agglomeration.Job Reallocation; Urban Growth and Agglomeration; Firm Dynamics

What makes regions in Eastern Europe catching up? The role of foreign investment, human resources and geography

This paper analyses regional growth in Eastern Europe in the second half of the 1990s, when regional disparities sharply increased. We aim to identify the factors behind growth and investigate in particular the role of (foreign) investment, education and innovation as well as geographical factors in a model of economic growth. The key relationships are estimated with spatial econometric tools on empirical data for the period 1995-2000. We find that foreign direct investment was paramount for growth in that period. EU border regions and capital areas clearly outperformed others. Further, regional growth clusters have appeared. Surprisingly, the high level of secondary education played no role to growth. Higher education, in contrast, was important, also for technology transfer. --Regional growth,Eastern Europe,foreign direct investment,education,spatial econometrics