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Kaldor's Laws and Spatial Dependence: Evidence for the European Regions


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  • Jordi Pons-Novell
  • Elisabet Viladecans-Marsal


PONS-NOVELL J. and VILADECANS-MARSAL E. (1999) Kaldor's laws and spatial dependence: evidence for the European regions, Reg. Studies 33, 443-451. In this paper we provide an outline of Kaldor's growth model and test its relevance to the economic experience of European regions during the period 1984-92. Kaldor's first law asserts that manufacturing is the engine of economic growth. His second proposition, also known as Verdoorn's law, states that there is a strong positive relation between manufacturing productivity growth and manufacturing output growth. Kaldor's third law holds that overall productivity growth is positively related to manufacturing output growth, and negatively related to employment in non-manufacturing sectors. The empirical results, corrected for the presence of spatial autocorrelation, indicate that Kaldor's second and third laws are compatible with the economic growth of European regions during the period 1984-92. PONS-NOVELL J. et VILADECANS-MARSAL E. (1999) Les lois de Kaldor et la dependance geographique: des preuves provenant des regions europeennes, Reg. Studies 33, 443-451. Cet article fournit une esquisse du modele de croissance de Kaldor et evalue sa pertinence pour l'experience economique des regions europeennes de 1984 a 1992. La premie � re loi de Kaldor affirme que l'industrie est le moteur de la croissance economique. La deuxieme loi, connue aussi sous le nom de la loi de Verdoorn, affirme que la croissance de la productivite industrielle est en correlation positive avec la croissance de la production industrielle. La troisieme loi de Kaldor affirme que la croissance globale de la productivite est en correlation positive avec la croissance de la production industrielle et en correlation negative avec l'emploi dans les secteurs hors de l'industrie. Les resultats empiriques, corriges pour autocorrelation spatiale, montrent que les deuxieme et troisieme lois de Kaldor sont compatibles avec la croissance economique des regions europeennes de 1984 a 1992. PONS-NOVELL J. und VILADECANS-MARSAL E. (1999) Kaldors Gesetze und raumliche Abha �ngigkeit: Beweise fur die europaischen Regionen, Reg. Studies 33, 443-451. Mit dem vorliegenden Aufsatz stellen die Autoren eine Ubersicht uber Kaldors Wachstumsmodell vor, und prufen seine Relevanz fur die Wirtschaftserfahrungen der europaischen Regionen im Zeitraum 1984-1992. Kaldors erstes Gesetz behauptet, Herstellung sei das Zugpferd wirtschaftlichen Wachstums. Seine zweite Aussage, die auch unter der Bezeichnung Verdoorns Gesetz bekannt ist, stellt fest, dass zwischen der Zunahme der Herstellerproduktivitat und dem Anstieg der Ertragsleistung eine durchaus positive Beziehung bestehe. Kaldors drittes Gesetz ist der Ansicht, dass die Gesamtzunahme der Produktivitat sich positiv zum Anstieg der Ertragsleistung verhalt, doch negativ zur Beschaftigung in nicht-herstellenden Sektoren. Die auf das Vorhandensein raumlicher Autokorrelation hin korrigierten, empirischen Ergebnisse deuten darauf hin, dass Kaldors zweites und drittes Gesetz mit dem wirtschaftlichen Wachstum europaischer Regionen im Zeitraum 1984-1992 vereinbar ist.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 33 (1999)
Issue (Month): 5 ()
Pages: 443-451

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Handle: RePEc:taf:regstd:v:33:y:1999:i:5:p:443-451

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Keywords: Kaldor'S Laws; Growth; Productivity; Regional Economics; Spatial Autocorrelation;


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  1. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  2. P Burridge, 1981. "Testing for a common factor in a spatial autoregression model," Environment and Planning A, Pion Ltd, London, vol. 13(7), pages 795-800, July.
  3. Parikh, A, 1978. "Differences in Growth Rates and Kaldor's Laws," Economica, London School of Economics and Political Science, vol. 45(177), pages 83-91, February.
  4. Nancy J. Wulwick, 1991. "Did the Verdoorn Law Hang on Japan," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 15-20, Jan-Mar.
  5. Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
  6. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
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  8. John S. L. McCombie, 1983. "Kaldor's Laws in Retrospect," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 414-429, April.
  9. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
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Cited by:
  1. Artis Kancs, 2001. "Predicting European Enlargement Impacts: A Framework of Interregional General Equilibrium," Eastern European Economics, M.E. Sharpe, Inc., vol. 39(5), pages 31-63, September.
  2. Tregenna, F., 2009. "Contracting Out of Service Activities and the Effects on Sectoral Employment Patterns in South Africa," Cambridge Working Papers in Economics 0906, Faculty of Economics, University of Cambridge.
  3. Reinhold Kosfeld & Christian Dreger, 2006. "Thresholds for employment and unemployment: A spatial analysis of German regional labour markets, 1992-2000," Papers in Regional Science, Wiley Blackwell, vol. 85(4), pages 523-542, November.
  4. Tregenna, Fiona, 2011. "Manufacturing Productivity, Deindustrialization, and Reindustrialization," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Viego, Valentina, 2010. "Rendimientos crecientes, costos de transporte, eslabonamientos verticales y asimetrías regionales persistentes
    [Increasing returns, transport costs, vertical linkages and persistent regional inequ
    ," MPRA Paper 26881, University Library of Munich, Germany, revised 04 Aug 2010.
  6. Alvaro Angeriz & John McCombie & Mark Roberts, 2008. "Returns to Scale for EU Regional Manufacturing," Working Papers 20, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  7. GUILLAIN, Rachel & DALL'ERBA, Sandy & LE GALLO, Julie, 2007. "Politiques de développement et croissance régionale en Europe : le rôle des rendements croissants et des dépendances spatiales," LEG - Document de travail - Economie 2007-02, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
  8. Gianfranco Piras & Paolo Postiglione & Patricio Aroca, 2012. "Specialization, R&D and productivity growth: evidence from EU regions," The Annals of Regional Science, Springer, vol. 49(1), pages 35-51, August.
  9. Elisabet Viladecans Marsal, 2001. "La concentración territorial de las empresas industriales: un estudio sobre la unidad geogr fica de an lisis mediante técnicas de econometría espacial," Working Papers 2001/2, Institut d'Economia de Barcelona (IEB).
  10. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.


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