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Industry Cluster and Regional Economic Growth : Evidence from Hungary

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

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. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
  2. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  3. 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.
  4. Sergio Rebelo, 1999. "Long Run Policy Analysis and Long Run Growth," Levine's Working Paper Archive 2114, David K. Levine.
  5. 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.
  6. Iwasaki, Ichiro & Csizmadia, Péter & Illéssy, Miklós & Makó, Csaba & Szanyi, Miklós, 2011. "The Nested Variable Model of FDI Spillover Effects Estimation Using Hungarian Panel Data," Discussion Paper Series 521, Institute of Economic Research, Hitotsubashi University.
  7. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  8. Holger Görg & David Greenaway, 2004. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Bank Research Observer, World Bank Group, vol. 19(2), pages 171-197.
  9. Capello, R. & Nijkamp, P., 2009. "Regional growth and development theories revisited," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  10. Balazs Lengyel & Loet Leydesdorff, 2011. "Regional Innovation Systems in Hungary: The Failing Synergy at the National Level," Regional Studies, Taylor & Francis Journals, vol. 45(5), pages 677-693.
  11. Iwasaki, Ichiro & Csizmadia, Péter & Illéssy, Miklós & Makó, Csaba & Miklós Szanyi, 2010. "Foreign Direct Investment, Information Spillover, and Export Decision : The Concentric-Circle Model with Application to Hungarian Firm-Level Data," Discussion Paper Series a527, Institute of Economic Research, Hitotsubashi University.
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