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Does Income Polarization Affect Economic Growth? The Case of the European Regions

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  • Roberto Ezcurra

Abstract

Ezcurra R. Does income polarization affect economic growth? The case of the European regions, Regional Studies. This paper examines the relationship between income polarization and economic growth in the regions of the European Union over the period 1993-2003. The results indicate that the level of income polarization is negatively associated with regional growth. This finding is in fact robust to various alternative specifications including a number of additional explanatory variables, such as initial per capita gross domestic product, industry mix, human capital stock, population density, or market potential. Furthermore, it should be noted that the observed negative correlation between polarization and economic performance does not depend on the number of groups used to analyse the degree of income stratification within the sample regions. [image omitted] Ezcurra R. La polarisation des revenus affecte-t-elle la croissance economique? Le cas des regions europeennes, Regional Studies. Cet article etudie les relations entre la polarisation des revenus et la croissance economique dans les regions de l'Union Europeenne entre 1993 et 2003. Les resultats indiquent que le niveau de la polarisation des revenus est associe de maniere negative au developpement regional. Ce resultat conforte en fait diverses autres specifications y compris un certain nombre de variables explicatives additionnelles comme le PIB par habitant, le mix industriel, le capital humain, la densite de population ou le potentiel des marches. En outre, il convient de noter que la correlation negative observee entre la polarisation et les resultats economiques ne depend pas du nombre de groupes utilises pour analyser le degre de stratification des revenus dans les regions echantillons. Polarisation des revenus Croissance economique Regions Union Europeenne Ezcurra R. Wirkt sich eine Einkommenspolarisierung auf das Wirtschaftswachstum aus? Der Fall der europaischen Regionen, Regional Studies. In diesem Artikel wird die Beziehung zwischen der Einkommenspolarisierung und dem Wirtschaftswachstum in den Regionen der Europaischen Union im Zeitraum von 1993 bis 2003 beschrieben. Die Ergebnisse weisen darauf hin, dass das Ausmass der Einkommenspolarisierung in einer negativen Verbindung zum Regionalwachstum steht. Dieses Ergebnis ist daruber hinaus auch bei Verwendung von verschiedenen alternativen Spezifikationen robust, darunter eine Reihe zusatzlicher erklarender Variablen wie z. B. das anfangliche Pro-Kopf-Bruttoinlandsprodukt, der Branchenmix, das Humankapital, die Bevolkerungsdichte oder das Marktpotenzial. Daruber hinaus sollte beachtet werden, dass die beobachtete negative Korrelation zwischen der Polarisierung und der Wirtschaftsleistung nicht von der Anzahl der Gruppen abhangt, die zur Analyse des Ausmasses der Einkommensstratifizierung innerhalb der untersuchten Regionen herangezogen werden. Einkommenspolarisierung Wirtschaftswachstum Regionen Europaische Union Ezcurra R. ¿Afecta la polarizacion de la renta al crecimiento economico? El caso de las regiones europeas, Regional Studies. Este trabajo examina la relacion entre la polarizacion de la renta y el crecimiento economico en las regiones de la Union Europea a lo largo del periodo 1993-2003. El analisis llevado a cabo indica que el nivel de polarizacion de la renta influye negativamente en el crecimiento regional. De hecho, este resultado es robusto a distintas especificaciones alternativas que incluyen variables explicativas adicionales como el nivel inicial de PIB por habitante, la estructura sectorial, el stock de capital humano, la densidad de poblacion o el potencial de mercado. Asimismo, cabe senalar que la correlacion negativa observada no depende del numero de grupos utilizado para analizar el grado de polarizacion de la renta en las regiones consideradas. Polarizacion de la renta Crecimiento economico Regiones Union Europea

Suggested Citation

  • Roberto Ezcurra, 2009. "Does Income Polarization Affect Economic Growth? The Case of the European Regions," Regional Studies, Taylor & Francis Journals, vol. 43(2), pages 267-285.
  • Handle: RePEc:taf:regstd:v:43:y:2009:i:2:p:267-285
    DOI: 10.1080/00343400701808899
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    Cited by:

    1. Vicente Rios Ibáñez & Roberto Ezcurra, 2013. "Volatility and regional growth in Europe: Does space matter?," ERSA conference papers ersa13p133, European Regional Science Association.
    2. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2012. "In search of the ‘economic dividend’ of devolution: spatial disparities, spatial economic policy, and decentralisation in the UK," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 30(1), pages 10-28, February.
    3. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    4. Struch Georg, 2012. "Eine verteilungspolitische Beurteilung aktueller Reformkonzepte zur deutschen Einkommensbesteuerung / A Distributional Analysis of Recent Reform Proposals on the German Income Tax Rate," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(5), pages 567-588, October.
    5. Michal Brzezinski, 2013. "Income Polarization and Economic Growth," LIS Working papers 587, LIS Cross-National Data Center in Luxembourg.
    6. Wang, Jinxian & Caminada, Koen & Goudswaard, Kees & Wang, Chen, 2015. "Decomposing income polarization and tax-benefit changes across 31 European countries and Europe wide, 2004-2012," MPRA Paper 66155, University Library of Munich, Germany.
    7. Saša Obradović & Nemanja Lojanica & Olivera Janković, 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, vol. 34(1), pages 161-186.
    8. Tello, Claudia & Ramos, Raúl, 2012. "Wage inequality and economic growth in Mexican regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 115-152.
    9. Wang, Chen & Wan, Guanghua, 2015. "Income polarization in China: Trends and changes," China Economic Review, Elsevier, vol. 36(C), pages 58-72.

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