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Industry Cluster and Regional Economic Growth : Evidence from Hungary

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

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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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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  1. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  2. 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.
  3. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  4. Sergio T. Rebelo, 1990. "Long Run Policy Analysis and Long Run Growth," NBER Working Papers 3325, National Bureau of Economic Research, Inc.
  5. Iwasaki, Ichiro & Csizmadia, P騁er & Ill駸sy, Mikl & Mak鵺 Csaba & Szanyi, Mikl齠, 2011. "The Nested Variable Model of FDI Spillover Effects Estimation Using Hungarian Panel Data," Discussion Paper Series 521, Institute of Economic Research, Hitotsubashi University.
  6. 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.
  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.
  9. Iwasaki, Ichiro & Csizmadia, P騁er & Ill駸sy, Mikl & MiklSzanyi, 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.
  10. 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.
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