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Industry Cluster and Regional Economic Growth : Evidence from Hungary

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  • Lengyel, Balázs
  • Iwasaki, Ichiro
  • Szanyi, Miklós
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    Abstract

    Using census-type data of Hungarian firms, we test major hypotheses of spatial economic theories focusing on the impact of industrial and market concentrations on regional economic growth. Our empirical evidence confirms that both industrial and market concentrations have a significant positive impact on production growth. This finding strongly supports the Marshall- Arrow-Romer model of local knowledge externalities, suggesting that investment-driven regional development prevails in Hungary.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18777/1/HJeco0510200930.pdf
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    Bibliographic Info

    Article provided by Hitotsubashi University in its journal Hitotsubashi Journal of Economics.

    Volume (Year): 51 (2010)
    Issue (Month): 2 (December)
    Pages: 93-112
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    Handle: RePEc:hit:hitjec:v:51:y:2010:i:2:p:93-112

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    Related research

    Keywords: Industry Cluster; Regional Growth; Knowledge Externalities; Hungary;

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    References

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
    2. Holger Görg & David Greenaway, 2004. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Bank Research Observer, Oxford University Press, vol. 19(2), pages 171-197.
    3. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor and Francis Journals, vol. 41(5), pages 685-697.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December.
    5. Balazs Lengyel & Loet Leydesdorff, 2011. "Regional Innovation Systems in Hungary: The Failing Synergy at the National Level," Regional Studies, Taylor and Francis Journals, vol. 45(5), pages 677-693.
    6. Sergio Rebelo, 1999. "Long Run Policy Analysis and Long Run Growth," Levine's Working Paper Archive 2114, David K. Levine.
    7. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
    8. Balázs Lengyel & Vladislav Cadil, 2009. "Innovation Policy Challenges in Transition Countries: Foreign Business R&D in the Czech Republic and Hungary," Transition Studies Review, Springer, vol. 16(1), pages 174-188, May.
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