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The impact of regional inequality on economic growth: a spatial econometric approach

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  • Domenica Panzera
  • Paolo Postiglione

Abstract

This paper investigates the relationship between economic growth and regional income inequality in a spatial econometric perspective. The role of space in the measure of inequality is discussed, and a new theoretical model that relates inequality with economic growth is introduced. The proposed model extends a spatial Mankiw–Romer–Weil specification by introducing regional income inequality as a determinant of economic growth. The measure of inequality proposed as a covariate in the model is derived by a spatial decomposition of the Gini index. An empirical analysis focused on European Union NUTS-2 regions is carried out to illustrate the model.

Suggested Citation

  • Domenica Panzera & Paolo Postiglione, 2022. "The impact of regional inequality on economic growth: a spatial econometric approach," Regional Studies, Taylor & Francis Journals, vol. 56(5), pages 687-702, May.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:5:p:687-702
    DOI: 10.1080/00343404.2021.1910228
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    Cited by:

    1. Flavia Ioana Patrascu & Ali Mostafavi, 2024. "Spatial model for predictive recovery monitoring based on hazard, built environment, and population features and their spillover effects," Environment and Planning B, , vol. 51(1), pages 39-56, January.
    2. Li, Junbao & Shi, Zhanzhong & He, Chengying & Lv, Chengshuang, 2023. "Peer effects on corporate R&D investment policies: A spatial panel model approach," Journal of Business Research, Elsevier, vol. 158(C).
    3. Ibolya Török & József Benedek & Manuel Gómez-Zaldívar, 2022. "Quantifying Subnational Economic Complexity: Evidence from Romania," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    4. Xu, Feng & Chi, Guangqing & Zhang, Zhexi & Yang, Jianxin, 2023. "How does quality regional growth affect land resources dependence in China? Evidence based on spatial Durbin panel models," Resources Policy, Elsevier, vol. 81(C).
    5. Mdingi, Kholeka & Ho, Sin-Yu, 2023. "Income inequality and economic growth: An empirical investigation in South Africa," MPRA Paper 117733, University Library of Munich, Germany.
    6. Yu Wang & Xudong Chen, 2024. "Impact Mechanism of Renewable Energy Technology Innovation on Carbon Productivity Based on Spatial Durbin Model," Sustainability, MDPI, vol. 16(5), pages 1-18, March.
    7. Luisa Alamá-Sabater & Yolanda de Llanos & Miguel Ángel Márquez & Emili Tortosa-Ausina, 2023. "Evaluating the spatial mismatch between population and factor endowments: The case of the European Union," Working Papers 2023/06, Economics Department, Universitat Jaume I, Castellón (Spain).

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