The opening of the North–South divide: Cumulative causation, household income disparity and the regional bonus in Taiwan 1976–2005
AbstractDuring the last decades regional income divergence seems to have reappeared in both developed and developing countries. In Taiwan – a renowned case of growth with equity – regional per capita income was converging until the early 1990s after which it began to diverge. With the help of modeled annual household survey data from 1976 to 2005 we indicate the magnitude of a regional bonus and discuss reasons behind the re-opening of the North–South income divide in Taiwan. Our analysis suggests that this process is a consequence of cumulative causation connected to the advent of the rise of ICT industry in conjunction with changes in Taiwan's political economy which provided relatively more advantageous economic opportunities for the industrial structure of the leading region.
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Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 23 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/525148
Regional income dynamics; Cumulative causation; Spatial inequality; Industrialisation; Taiwan;
Find related papers by JEL classification:
- N00 - Economic History - - General - - - General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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