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Industry Cluster and Regional Economic Growth : Evidence from Hungary

Author

Listed:
  • 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.

Suggested Citation

  • Lengyel, Balázs & Iwasaki, Ichiro & Szanyi, Miklós, 2010. "Industry Cluster and Regional Economic Growth : Evidence from Hungary," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 51(2), pages 93-112, December.
    • Handle: RePEc:hit:hitjec:v:51:y:2010:i:2:p:93-112
    DOI: 10.15057/18777
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    References listed on IDEAS

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    Cited by:

    1. Correa, Paulo & Andres, Luis & Borja-Vega, Christian, 2013. "The impact of government support on firm R&D investments : a meta-analysis," Policy Research Working Paper Series 6532, The World Bank.

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    More about this item

    Keywords

    Industry Cluster; Regional Growth; Knowledge Externalities; Hungary;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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