IDEAS home Printed from https://ideas.repec.org/a/bla/ecgeog/v91y2015i2p205-221.html
   My bibliography  Save this article

The Contribution of Regions to Aggregate Growth in the OECD

Author

Listed:
  • Enrique Garcilazo
  • Joaquim Oliveira Martins

Abstract

This article investigates the contribution of regions to aggregate growth. We find a great degree of heterogeneity in the performance of Territorial Level 3 (TL3) regions of the OECD (Organization for Economic Cooperation and Development). The regional contributions to aggregate growth follow a power law, with a coefficient around 1.2 (in absolute terms). This implies that Few-Large (FL) regions contribute disproportionately to aggregate growth whereas Many-Small (MS) individual regions contribute only marginally. Because the large number of these smaller regions and the decay of their contribution to growth is slow (generating a fat tail distribution), their cumulated contribution is actually around two-thirds of aggregate growth.

Suggested Citation

  • Enrique Garcilazo & Joaquim Oliveira Martins, 2015. "The Contribution of Regions to Aggregate Growth in the OECD," Economic Geography, Clark University, vol. 91(2), pages 205-221, April.
  • Handle: RePEc:bla:ecgeog:v:91:y:2015:i:2:p:205-221
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/ecge.12087
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Uwe Deichmann & Indermit Gill & Chor Ching Goh, 2010. ""World Development Report 2009:" A Practical Economic Geography," Economic Geography, Clark University, vol. 86(4), pages 371-380, October.
    2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    3. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 857-880.
    4. Jamie Peck & Eric Sheppard, 2010. "Worlds Apart? Engaging with the "World Development Report 2009: Reshaping Economic Geography"," Economic Geography, Clark University, vol. 86(4), pages 331-340, October.
    5. Victoria Lawson, 2010. "Reshaping Economic Geography? Producing Spaces of Inclusive Development," Economic Geography, Clark University, vol. 86(4), pages 351-360, October.
    6. repec:hhs:iuiwop:430 is not listed on IDEAS
    7. Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012. "The Case For Regional Development Intervention: Place‐Based Versus Place‐Neutral Approaches," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 134-152, February.
    8. Deborah Fahy Bryceson & Katherine V. Gough & Jonathan Rigg & Jytte Agergaard, 2009. "Critical Commentary. The World Development Report 2009," Urban Studies, Urban Studies Journal Limited, vol. 46(4), pages 723-738, April.
    9. Gillian Hart, 2010. "Redrawing the Map of the World? Reflections on the "World Development Report 2009"," Economic Geography, Clark University, vol. 86(4), pages 341-350, October.
    10. Daron Acemoglu & Melissa Dell, 2010. "Productivity Differences between and within Countries," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 169-188, January.
    11. Allen J. Scott, 2009. "World Development Report 2009: reshaping economic geography," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 583-586, July.
    12. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-245, January.
    13. Xavier Gabaix, 1999. "Zipf's Law for Cities: An Explanation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 739-767.
    14. Xavier Gabaix, 1999. "Zipf's Law and the Growth of Cities," American Economic Review, American Economic Association, vol. 89(2), pages 129-132, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sabine D'Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2016. "Impact of Structural Reforms on Regional Growth: Distance to the Frontier Matters," SERC Discussion Papers 0203, Spatial Economics Research Centre, LSE.
    2. Sabine D’Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2017. "Impact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters," Working Papers 86, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.

    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecgeog:v:91:y:2015:i:2:p:205-221. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/declaus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.