IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

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

Listed author(s):
  • Roberto Ezcurra
Registered author(s):

    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

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400701808899
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 43 (2009)
    Issue (Month): 2 ()
    Pages: 267-285

    as
    in new window

    Handle: RePEc:taf:regstd:v:43:y:2009:i:2:p:267-285
    DOI: 10.1080/00343400701808899
    Contact details of provider: Web page: http://www.tandfonline.com/CRES20

    Order Information: Web: http://www.tandfonline.com/pricing/journal/CRES20

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window

    1. Beugelsdijk, S. & van Schaik, A.B.T.M., 2005. "Differences in social capital between 54 western European regions," Other publications TiSEM 78302d91-740f-4f22-9fe6-7, Tilburg University, School of Economics and Management.
    2. Roland Benabou, 1996. "Inequality and Growth," NBER Working Papers 5658, National Bureau of Economic Research, Inc.
    3. Gaetano Martino & Cristiano Perugini, 2008. "Income inequality within European regions: determinants and effects on growth," Quaderni del Dipartimento di Economia, Finanza e Statistica 52/2008, Università di Perugia, Dipartimento Economia.
    4. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    5. Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional Specialization in the European Union," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 601-616.
    6. Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-187, June.
    7. Raffaele Paci, 1997. "More similar and less equal: Economic growth in the European regions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(4), pages 609-634, December.
    8. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    9. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
    10. Jenkins, Stephen P, 1996. "Recent Trends in the UK Income Distribution: What Happened and Why?," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 29-46, Spring.
    11. Andrés Rodríguez-Pose & Ugo Fratesi, 2003. "Between development and social policies: the impact of European Structural Funds in Objective 1 Regions," European Economy Group Working Papers 28, European Economy Group.
    12. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, 03.
    13. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
    14. Andrés Rodríguez-Pose & Montserrat Vilalta-Bufi, 2004. "Education, Migration, and Job Ssatisfaction: the Regional Returns of Human Capital in the EU," Bruges European Economic Research Papers 1, European Economic Studies Department, College of Europe.
    15. Chakravarty, Satya R & Majumder, Amita, 2001. "Inequality, Polarisation and Welfare: Theory and Applications," Australian Economic Papers, Wiley Blackwell, vol. 40(1), pages 1-13, March.
    16. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363.
    17. Marius Brülhart & Matthieu Crozet & Pamina Koenig, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00096285, HAL.
    18. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
    19. Ottaviano, Gianmarco & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
    20. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    21. Hongyi Li & Heng-fu Zou, 1998. "Income Inequality Is Not Harmful for Growth: Theory and Evidence," CEMA Working Papers 74, China Economics and Management Academy, Central University of Finance and Economics.
    22. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapun, 2005. "Regional inequality in the European Union: Does industry mix matter?," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 679-697.
    23. Costas Megir & Danny Quah, 1996. "Regional Convergence Clusters Across Europe," CEP Discussion Papers dp0274, Centre for Economic Performance, LSE.
    24. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    25. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
    26. Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    27. Easterly, William, 2000. "the middle class consensus and economic development," Policy Research Working Paper Series 2346, The World Bank.
    28. Juan Antonio Duro, 2005. "International income polarization: a note," Applied Economics Letters, Taylor & Francis Journals, vol. 12(12), pages 759-762.
    29. Mark D. Partridge, 2005. "Does Income Distribution Affect U.S. State Economic Growth?," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 363-394.
    30. Clarke, George R. G., 1992. "More evidence on income distribution and growth," Policy Research Working Paper Series 1064, The World Bank.
    31. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    32. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73.
    33. Partridge, Mark D, 1997. "Is Inequality Harmful for Growth? Comment," American Economic Review, American Economic Association, vol. 87(5), pages 1019-1032, December.
    34. Venieris, Yiannis P & Gupta, Dipak K, 1986. "Income Distribution and Sociopolitical Instability as Determinants of Savings: A Cross-sectional Model," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 873-883, August.
    35. Panizza, Ugo, 2002. "Income Inequality and Economic Growth: Evidence from American Data," Journal of Economic Growth, Springer, vol. 7(1), pages 25-41, March.
    36. Davies, J. B. & Shorrocks, A. F., 1989. "Optimal grouping of income and wealth data," Journal of Econometrics, Elsevier, vol. 42(1), pages 97-108, September.
    37. Andres Rodríguez-Pose & Ugo Fratesi, 2003. "Regional economic cycles and the emergence of sheltered economies in the periphery of the EU," ERSA conference papers ersa03p189, European Regional Science Association.
    38. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
    39. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    40. Juan R. Cuadrado-Roura & TomÂs Mancha-Navarro & RubÊn Garrido-Yserte, 2000. "Regional productivity patterns in Europe: An alternative approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 365-384.
    41. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, December.
    42. Roberto Ezcurra & Pedro Pascual, 2005. "Is there convergence in income inequality levels among the European regions?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(12), pages 763-767.
    43. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:43:y:2009:i:2:p:267-285. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.