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The influence of economic growth on regional disparities: Empirical evidence from OECD countries

Author

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  • Saša Obradoviæ

    (Faculty of Economics, University of Kragujevac,Kragujevac,Serbija)

  • Nemanja Lojanica

    (Faculty of Economics, University of Kragujevac,Kragujevac,Serbija)

  • Olivera Jankoviæ

    (Faculty of Economics, University of Kragujevac,Kragujevac,Serbija)

Abstract

In the context of growing regional disparities which exist both in developed and developing countries, the primary goal of this paper is to examine the influence of total economic activities on regional disparities. In the research panel sample of the selected OECD countries has been used with the data for the time period from 2000 to 2011. The empirical analysis reveals that there is a long-term relationship between the variables, that economic growth and regional disparities move in the same direction and that the impact of economic growth on regional disparities is statistically significant. Consequently, in order to reduce regional disparities, it is necessary to increase the share of less developed regions in the total output. In this matter, it should be helpful to adequately coordinate policies about regional development from all levels of governance.

Suggested Citation

  • Saša Obradoviæ & Nemanja Lojanica & Olivera Jankoviæ, 2016. "The influence of economic growth on regional disparities: Empirical evidence from OECD countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 34(1), pages 161-186.
    • Handle: RePEc:rfe:zbefri:v:34:y:2016:i:1:p:161-186
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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