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Regional distribution of gross domestic product in the Czech Repbulic

Listed author(s):
  • Milan Damborský
Registered author(s):

    Regional distribution of gross domestic product is one of the basic themes of regional analyses. Knowledge of main trends in regional disparities is conduction for realisation of the whole scope of research projects in the area of regional development. Gross domestic product (GDP) is the most frequently used indicator for rating of economic level and power of economy of regions. Weakness of using indicator GDP is the fact that it is impossible to quantify exactly the GDP on lower level than NUTS 0 or NUTS II. Th e highest value of absolute regional (NUTS III) GDP per inhabitant in current prices in 2006 was in Prague (663.000 of CZK, nearly 2.5-multiple of value of the Czech republic). Prague is followed by Plzeňský kraj (region) with great distance (295.000 CZK). Th is region is very attractive for foreign investments. Next region is Jihomoravský kraj (286.000 CZK). Brno, the growth-centre with national importance, is very important for this region. Th e lowest values are discovered in Olomoucký kraj, Karlovarský kraj (240.000 CZK), Ústecký kraj (254.000 CZK).Th e highest growth of GDP in 2006 was discovered in Liberecký kraj (9.6 %), Zlínský kraj (7.7 %) and Středočeský kraj (7.3 %). Th e lowest growth of gross domestic is discovered in Olomoucký kraj (region with the lowest value of absolute gross domestic product). Th e low growth of GDP is also in Jihomoravský kraj (5.3 %) and Prague (5.4 %) ? regions with above-average absolute GDP. Annual rate of growth of GDP (from 1995 to 2006) in fi xed prices in the Czech Republic is 3.0 %. Th e highest values are in Středočeský kraj (4.5 %), Praha (4.2 %) and Vysočina (3.4 %). Th e lowest values are in Karlovarský kraj (0.7 %), Ústecký kraj (1.3 %) and Moravskoslezský kraj (2.1 %). From the comparison of order of regions in absolute value of GDP per inhabitant and average growth annual rate of GDP from 1995 to 2006 in fi xed prices it is possible to set that regions with lower level of GDP are also regions with low growth of GDP and equivalently regions with higher level of GDP are also regions with higher growth of GDP (correlation coeffi cient 0.66). Th e highest diff erences of position in order of absolute GDP per inhabitant and average annual rate of GDP are in Jihomoravský kraj (? 7), Vysočina (+ 6), Moravskoslezský kraj (? 5), Liberecký and Středočeský kraj (+ 3). Absolute value of the other regions is only 1 or 2. Correlation coeffi cient of absolute value of GDP per inhabitant and annual rate of growth of GDP in 2006 is not so high (0.37).Th e most developed region of the Czech Republic is Prague with highest absolute value of GDP per inhabitant in 2006 and second highest average annual rate of GDP from 1995 to 2006 in fi xed prices. Prague is the most important development centre of the Czech Republic. Th e similar situation is in the large majority of the states over the whole world. Second developed region is Středočeský kraj with fourth possition in order of absolute value of GDP per inhabitant and the highest average growth annual rate of GDP. Th e worst economical situation is in Olomoucký, Karlovarský and Ústecký kraj. On the base of analysis of position of regions in order of modifi ed indicators of GDP it is possible to say that regional disparities in the Czech Republic are higher and higher.

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    Article provided by University of Economics, Prague in its journal Regionální studia.

    Volume (Year): 2007 (2007)
    Issue (Month): 1 ()
    Pages: 42-45

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    Handle: RePEc:prg:jnlrst:v:2007:y:2007:i:1:id:45:p:42-45
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