A NOTE ON THE DIFFERENTIAL REGIONAL EFFECTS OF INCOME INEQUALITY: EMPIRICAL EVIDENCE USING U.S. COUNTY‐LEVEL DATA

This note examines the correlation between income inequality and economic growth using a panel of income distribution data for 3,109 counties of the U.S. Using the System Generalized Method of Moments (GMM) approach, we find that for the entire sample of 3,109 counties, an increase in a county's level of inequality has a significant negative relationship with future economic growth. In reality, however, the magnitude, sign, and significance of this relationship is not necessarily uniform across all regions of the U.S., motivating the need to examine regional differentials in the relationship between inequality and growth. Consequently, we split our dataset into metropolitan and nonmetropolitan counties, into the eight Bureau of Economic Analysis regions, and into regions of different political affiliation and economic‐dependence typology. Our results show considerable heterogeneity in the relationship between inequality and growth across these regions.     

When Innovation Does Not Pay Off: Introducing the “European Regional Paradox”

In the last few decades, innovation has been widely recognized to be the engine of wealth and prosperity as it intensifies competition and increases productivity, which both in turn lead to significant economic benefits such as higher income per capita and increased employment. However, empirical evidence in this article illustrates that innovation seems not to have paid-off for some of the most innovative regions in Europe, as these regions, despite being highly innovative, grow at a slower pace than their national counterparts, as well as presenting poor economic outcomes such as low income per capita and high unemployment rates. The aim of this article is to communicate this intriguing observation to both innovation scholars and to policy-makers, since its very existence seems to cast doubt not only on one of the most principal assumptions in the field of innovation studies (i.e. innovation as the engine of growth) but also on one of the most fundamental pillars currently underpinning several regional, national and supranational economic policies.     

The service sector,regional specialization,and economic growth in the Victorian economy

During the Victorian period there were substantial regional variations in employment in the service industries. Explanations of economic growth in this period have been dominated by the notion that it was industry-led. If that were so, service growth would be a function of industrial growth. Testing of this thesis by econometric methods suggested that industry provided a poor explanation for variations in services, and that the main explanation was provided by variations in income. This raised other questions, since income per head in the industrial areas was generally much lower than in the less industrialized and service-oriented south of England. There is an abundance of evidence to suggest that this service-oriented regional growth was not derived from industrial development but from international trade and finance together with the consumer spending of a wealthy landed society. There was thus a substantial element of economic and spatial dualism in the Victorian economy. The role of heavy industry in Victorian growth thus needs to be revised considerably downward, and the importance of services and the South East region in particular revised considerably upward. Indeed it is by no means sure that the industrial regions provided the principal stimulus to Victorian growth: the evidence of this study would suggest otherwise.     

INCOME INEQUALITY,ECONOMIC GROWTH,AND THE DISTRIBUTION OF INCOME GAINS: EVIDENCE FROM THE U.S. STATES*

ABSTRACT This paper first investigates a relationship between economic growth and income inequality using U.S. states data, a state cost‐of‐living deflator, and nonlinearity. It then explores the distribution of income gains among different income groups. We find that the impact of inequality on growth is nonlinear. Lowering inequality or increasing it substantially reduces growth; thus stable inequality may be good for growth. Economic growth affects incomes of the poor, the middle‐income group, and the rich similarly with the elasticity of one. Education and labor market policies become important in promoting growth and improving income gains of the poor.     

1978年来长江三角洲经济格局空间演变研究

本文通过ESDA相关分析,以4个时间断面的县域单元为研究对象,描述了1978年以来长江三角洲县域经济格局在空间上的变化状况。总体自相关趋势在不断增加,高低集聚的格局不断加强,热点区域分布的空间结构经历了从"一"字形到"二"字形,再到"Z"字形的演化过程。经济增长空间格局发展的态势在空间分布上表现出更多的随机性和结构的不稳定性,热点区域切换频繁,没有明显的地理集中现象。最后将长江三角洲经济格局演化因素归结为4个方面:历史发展基础、经济区位、交通条件和区域发展政策,历史发展基础、经济区位是区域经济格局演化的内在因素,而交通条件、区域发展政策则是区域经济格局演化的外在推手。     

Welfare accounting and the environment: reassessing Brazilian economic growth, 1965-1993

Few countries in recent decades have experienced economic growth as rapid as that in Brazil. The period spanning the late 1960s and mid 1970s, during which GDP growth was especially strong, is often referred to as the ‘economic miracle’. Yet, the use of per capita GDP growth as a proxy for economic development (or social welfare improvement) can be questioned on both distributional and environmental grounds. Scholars such as Ahluwalia and Chenery have noted that per capita GDP growth places greater weight on the income of richer income groups, and have proposed distribution‐neutral and pro‐poor alternatives. More recently, studies by the World Resources Institute and others have questioned the environmental sustainability of GDP growth and have introduced an alternative national income accounting methodology that factors in estimated losses associated with natural resource depletion. To date, no studies have undertaken both types of revisions concurrently, creating a revised national welfare measure based on per capita GDP, but corrected for both distributional bias and resource depletion. Such a measure is derived in this article and applied to the Brazilian case. The results cast doubt on the proposition that rapid economic growth in Brazil has resulted in comparable welfare gains.     

Regional Analysis of China's Green GDP

A Chinese economist and U.S.-based economic geographer investigate China's move toward introducing "greener" measures of economic output to better assess the environmental costs associated with the country's recent economic development. More specifically, the authors applied a model of green gross regional product (GGRP) that adjusts for the costs of growth arising from negative environmental externalities. They then conduct a spatial analysis of the indicator's distribution across China's provinces in 2007 in an attempt to better understand the factors explaining its patterns. The analysis indicates that once environmental externalities in the form of industrial wastes are accounted for, the coastal—inland divide that traditionally describes China's geography of income inequality is much less obvious. Rather a more diffuse pattern emerges, in which some poor provinces are found to be relatively efficient regional producers whereas certain wealthier ones are not.     

区域经济增长的文化产业驱动效应研究——基于省级面板数据的分析

本文采用中国31个省份1996-2013年的面板数据,对中国文化产业与经济发展的内在驱动效应展开研究。研究发现:第一,文化产业投入和产出规模扩张对地区GDP和人均GDP增长具有显著作用,两者间的交互效应会加大其对经济发展的推动力;第二,文化产业有助于带动旅游业和整个第三产业发展,促进地区经济增长;第三,中国文化产业对经济发展的带动效应存在显著的地区差异,西部地区文化产业对经济发展的提升作用最大,中部和东部地区效应相对不足。因此,进一步加大对文化产业发展的政策支持,实现文化产业的合理布局,不仅能够促进整体经济增长,而且可以实现区域平衡发展。     

Inclusive growth from an urban perspective: a challenge for the metropolis of the twenty-first century

This paper addresses the study of inclusive growth from an urban perspective. It proposes to focus the relationship between urban economic growth and income distribution in cities in which manufacturing production and external demand play a central role. Opposed to the literature that considers economic growth leads to an increase in inequality in income distribution, we present some operative economic tools from Marshallian Industrial Districts theory and from urban economic theory with which to develop an economic strategy for inclusive urban growth, making possible to achieve simultaneously economic growth and improvements in income distribution. An interesting example of a metropolis with a dynamic of economic and employment growth compatible with a reduction in income inequality is provided by Barcelona. This metropolis disposes a Survey of living conditions and habits of the population since 1986 that allows an analysis in terms of inclusive urban growth.     

京津冀地区城市间行业工资差异及影响因素分析

基于2005-2012年京津冀各城市工资及其它社会经济数据,探讨了市场潜能、产业集聚、人力资本、制度改革等因素对城市间各行业工资差异的影响。结果表明：①市场潜能对各行业工资水平的增长均有一定的促进作用。②除消费性服务业外,各类产业集聚对地区平均工资水平的提高均有一定的促进作用,但制造业集聚带来的拥挤效应也已开始体现;生产性服务业集聚能够带动公共性服务业工资的提升,而公共性服务业缺乏对生产性服务业的反哺;产业集聚对消费性服务业工资缺乏带动作用。③在控制变量方面,交通基础设施对工资水平的带动作用逐渐弱化;科技投入、人力资本对服务业工资水平的带动作用较高,而对制造业影响较弱;市场经济体制改革对工资水平的带动作用仍未体现;政府市场干预能力的提高仅带动了公共性服务业工资的提升,而外向度的提升则仅对公共性服务业缺乏带动作用。     

Western Australia's Royalties for Regions program: a policy response to growth,regional neglect,and perceived disempowerment

Under the right conditions, compounding socio‐political and economic change can dramatically alter government policy. From 2000, Western Australia, a resource‐rich jurisdiction, experienced significant change owing to a once‐in‐a‐generation resources boom, which forced a break with earlier development approaches. In 2008, regional interventionism returned to the State via the State Government's Royalties for Regions program. Departing from the neo‐liberal tradition, the program allocated 25 per cent of the State's royalty income to non‐metropolitan regions, over and above existing regional allocations, and its success remains disputed. While it is easy to question the program retrospectively, the socio‐economic and political circumstances from 2000 to 2008 reveal a “perfect storm” of conditions enabling the transition from neo‐liberalism to interventionism in regional development. This paper sets out to understand the multi‐faceted conditions that enabled the dramatic paradigm shift embodied by the program. To this end, it examines the State's rural–urban settlement dichotomy, its staples economy, and the policy context leading up to the program. Following that, the paper proposes a causal framework mapping out the factors driving and rationalising the program. These factors are then examined in detail and include perceived rural voter disenchantment, ineffectual regional development policy, the State's mining boom, inadequate regional development funding, the contrasting fortunes of two regions (illustrative of the impact of growth, and the lack thereof), and the political manoeuvring during the 2008 election. Finally, the paper concludes by considering how the conversion of these conditions resulted in the State's most significant regional policy redirection in decades.     

Reserve Selection for Nature Conservation in South Australia: Past,Present and Future

This paper re‐examines the chronology of reserve selection in South Australia in the context of changing social, political and economic attitudes. The effect of these changing attitudes on reserve selection in South Australia is assessed in the light of the principles of a comprehensive, adequate and representative (CAR) National Reserve System. The outcome of reserve selection in South Australia is the establishment of a vast network of reserves in the arid regions and many fragmented and small reserves in the agricultural regions. It is likely that the remnant ecological system in the agricultural regions is not representative of the regional environmental diversity and that land clearance has precluded the establishment of a CAR reserve system in South Australia. The rate of reserve selection for nature conservation has decreased over the past decade as the opportunities for reserve acquisition decrease. It is concluded that large‐scale and strategic revegetation will be required to facilitate a CAR reserve system in South Australia.     

Understanding the Southern African ‘Anomaly’: Poverty,Endemic Disease and HIV

The epicentre of the global HIV epidemic is southern Africa. Previous explanations point to migration patterns and highly skewed income distribution, both thought to promote risky sexual behaviour. This study emphasizes the importance of common infectious and parasitic diseases that increase the likelihood of HIV transmission by increasing contagiousness and vulnerability to infection. Using multiple regression analysis on country‐level data, the authors find that socio‐economic variables explain statistically only one‐tenth of the difference in HIV prevalence between southern Africa and other low‐ and middle‐income countries. Measures of five cofactor infections together with the socio‐economic variables, however, explain statistically about two‐thirds of the southern Africa difference in HIV prevalence. They conclude that the relative affluence of countries in southern Africa and historical migration patterns have tended to mask the vulnerability of the majority of their populations who are poor and who have very high prevalence of infectious and parasitic diseases. Those diseases replicate a cycle of poverty that produces biological vulnerability through coinfections. An important implication of this research is that integrating treatment of endemic diseases with other HIV‐prevention policies may be necessary to slow the spread of HIV.     

The Amenity Complex: Towards a Framework for Analysing and Predicting the Emergence of a Multifunctional Countryside in Australia

There is growing consensus among academics, regional development organisations and rural communities that the future growth and development of rural regions is increasingly dependent upon their ability to convey, to both established and prospective residents, the ‘amenity’ of their local physical, social and economic environments. However, little research to date has sought to identify exactly what comprises ‘amenity’ in the rural context, or has examined how this conceptually slippery quality is distributed across rural Australia, or how it influences local demographic, socio‐economic and land use change. This paper attempts a broad scale investigation of rural amenity in the south‐east Australian ecumene, identifying its core components in this context, mapping its distribution and assessing the nature of its influence over in‐migration rates over the past three decades. The paper finds that, at a macro‐scale, amenity tends to follow a general gradient from high to low according to distance from the coast, and that its relationship with in‐migration rates has increased substantially between 1976–1981 and 1996–2001.     

ECONOMIC DEVELOPMENT TRENDS IN THE USSR, 1970-1988: PART I (PRODUCTION AND PRODUCTIVITY)

The first of two articles devoted to spatial and temporal trends in economic development and levels of living within the USSR focuses on changes in the pattern of absolute and per capita economic output—national income produced and gross value of industrial output (at the republic and economic regional level, respectively). It then investigates the question of whether divergence or convergence has occurred among republics and economic regions in terms of these indicators. Finally, it assesses patterns of change in labor and capital productivity across Soviet republics.     

Human capital accumulation and long‐term income growth projections for European regions

We propose an econometric framework to construct projections for per capita income growth and human capital for European regions. Using Bayesian methods, our approach accounts for model uncertainty in terms of the choice of explanatory variables, the nature of spatial spillovers, as well as the potential endogeneity between output growth and human capital accumulation. This method allows us to assess the potential contribution of future educational attainment to economic growth and income convergence among European regions over the next decades. Our findings suggest that income convergence dynamics and human capital act as important drivers of income growth for the decades to come.     

Regional Innovation Support Systems: Recent Trends in Germany and East Asia

Since the beginning of the 1990s, one can observe a clear shift in the aims of regional policy in industrialized countries from reducing regional inequalities to developing endogenous small and medium-sized enterprises (SMEs) and innovation in regions through regional innovation support systems. Innovation support systems are defined as a group of actively cooperating organizations that support the innovativeness of SMEs. An innovation support system consists of all agencies found in three support stages, namely the provision of general information, technological advice and joint R&D projects, between firms (of which technology-following SMEs are the main group), higher education institutes (HEIs) and public research establishments (PREs). Agencies found in these stages try to help to solve innovation problems mainly of technology-following SMEs by either giving them advice themselves or by referring them to other agencies in a further stage of support. The agencies can be mainly supra-nationally, nationally or regionally initiated. This paper aims at comparing these regional innovation support systems in Germany and East Asia, that is Japan and South Korea, both concerning the instruments used, their impact on regional economic development, their level of organizational embeddedness in regions and the ability of regions to coordinate innovation support policies. The main conclusions of the paper are that there are similarities between the regional innovation support systems found in the countries when it comes to policy instruments, but that the countries differ concerning their level of regional embeddedness and the abilities of regions to coordinate innovation support policies. The paper also tentatively concludes that in countries where regions have the ability to coordinate policies into integrative innovation support systems, the impact on regional economic development tend to be larger than in countries where these abilities are lacking, that is where dirigiste and grassroots support systems prevail. One important explanation for the different coordinating abilities lies in the different political-administrative systems found in the studied countries (centralized in South Korea versus federal in Germany). Other factors explaining differences are: a time lag of development policies between countries, differences between the history of supporting SMEs in regions, supra-national support frameworks, the commitment of the political leaders in regions, collective trust and the size of countries.     

Cash Transfers and the Well‐being of Older People in Brazil

This article provides a comprehensive assessment of the effects of social protection interventions on material and subjective elements of well‐being. Drawing on a longitudinal survey located in two relatively deprived parts of Brazil, it assesses the effects of pensions and other cash transfers on the well‐being of older people and their households. This analysis is located within a dynamic economic and public policy context. The article finds that pension benefits significantly increase per capita income and that this is strongly associated with overall levels of satisfaction with household well‐being. Levels of reported subjective well‐being do not fall as respondents age, and the survey finds high levels of optimism about future well‐being. The positive effects of pension benefits were supported by upgraded health services and by more specific policies such as access to credit on favourable terms. Overall, the authors conclude that a combination of economic growth and effective public policies significantly boosted the well‐being of most households in their survey, and that Brazil can be taken as a model of good practice for other middle‐income countries.     

La ségrégation économique comme un phénomène complexe : une analyse spatio-temporelle du cas montréalais

Economic segregation, or residential inequalities based on income, is a complex spatial process. It is associated with structures which arise at certain scales and which evolve in time. In this paper, we analyse the evolution of economic segregation in Montréal from 1980 to 2000. This analysis is based on household's income and on their distribution within the residential space from four scales: households, census tracts, municipalities and some radio-concentric zones. Results confirm that the spatial organisation of economic segregation is scale dependent. More precisely, local inequalities are growing more rapidly but this trend does not prevent the consolidation of metropolitan-sized clusters. Moreover, results confirm that Montréal's economic segregation follows North American trends like the growth of economic disparities (spatial or not) or the fact that the enrichment of central and ex-urban neighbourhoods is compensated by the impoverishment of inner-ring suburbs.     

AGGLOMERATION AND GROWTH WITH ENDOGENOUS EXPENDITURE SHARES*

ABSTRACT We develop a New Economic Geography and Growth model which, by using a CES utility function in the second‐stage optimization problem, allows for expenditure shares in industrial goods to be endogenously determined. The implications of our generalization are quite relevant. In particular, we obtain the following novel results: (1) two additional nonsymmetric interior steady states emerge for some intermediate values of trade costs. These steady‐states are stable if the industrial and the traditional goods are either good or very poor substitutes, while they are unstable for intermediate (yet lower than one) values of the intersectoral elasticity of substitution. In the latter case, the model displays three interior steady states—the symmetric and the core‐periphery allocations—which are stable at the same time; (2) agglomeration processes may always take place, whatever the degree of market integration, provided that the traditional and the industrial goods are sufficiently good substitutes; (3) the regional rate of growth is affected by the interregional allocation of economic activities even in the absence of localized spillovers, so that geography always matters for growth and (4) the regional rate of growth is affected by the degree of market openness: in particular, depending on whether the traditional and the industrial goods are good or poor substitutes, economic integration may be, respectively, growth‐enhancing or growth‐detrimental.