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Taxonomic Measure of Development (TMD) with the inclusion of spatial dependence

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  • Michal Bernard Pietrzak

    () (Nicolaus Copernicus University, Poland)

Abstract

The subject of the article concerns the question of the use of a taxonomic measure of development (TMR) in spatial economic analyses under the conditions of spatial dependence. Positive spatial dependence is observed for the majority of economic phenomena. This forces the inclusion of this dependence in the construction of the measure, thus providing a spatial taxonomic measure of development (pTRM). Therefore, the aim of this article is to develop a proposal for the construction of a spatial taxonomic measure of development. Spatial dependence will be taken into account in the design of the meter by using the potential strength of the interaction between the regions. As a result, a spatial taxonomic measure of development will allow the trend in the analyzed phenomena to be determined. The construction of the spatial taxonomic measure of development (pTMR) proposed in the article was applied in the study of the spatial economic development level of Polish subregions (NUTS 3) in 2011. The analysis allowed us to assess the economic situation in Poland and to identify trends in the economic development of subregions.

Suggested Citation

  • Michal Bernard Pietrzak, 2014. "Taxonomic Measure of Development (TMD) with the inclusion of spatial dependence," Working Papers 10/2014, Institute of Economic Research, revised May 2014.
  • Handle: RePEc:pes:wpaper:2014:no10
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    More about this item

    Keywords

    regional development; numeric taxonomy; Taxonomic Measure of Development; spatial econometrics; spatial dependence;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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