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The impact of regional disparities on economic growth

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  • Gurgul, Henryk
  • Lach, Łukasz

Abstract

This paper sought to investigate how economic growth affects the disparity in regional income distribution in Poland and vice versa. The research was based on annual data covering the period 2000–2009. In general, the research was divided into two main parts. First, we wanted to examine the evolution of the level of spatial income inequality in Poland over the last decade using the concepts of sigma– and beta–convergence. Second, we wanted to test the nature of causal dependences between this inequality and economic growth. In the first part of the research we found that Polish regions did not converge with respect to the income distribution as total GDP grew. The second part of the research provided evidence to claim that this inequality Granger caused growth. Moreover, we also found evidence that growth affected regional inequality. Finally, we noticed that the effects of both these links were positive. The outcomes of this paper suggest that in the consequence of the rapid economic growth some regions in Poland seized new opportunities, while less developed regions were unable to keep up with the challenging requirements of a decade of fast economic growth.

Suggested Citation

  • Gurgul, Henryk & Lach, Łukasz, 2011. "The impact of regional disparities on economic growth," MPRA Paper 52258, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52258
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    References listed on IDEAS

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    Cited by:

    1. Henryk Gurgul & Lukasz Lach, 2012. "Two deficits and economic growth: case of CEE countries in transition," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 12, pages 79-108.
    2. Henryk Gurgul & Łukasz Lach, 2019. "Regional patterns in technological progress of Poland: the role of EU structural funds," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(4), pages 1195-1220, December.
    3. 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.
    4. V. N. Ovchinnikov & Ya. Ostoi, 2022. "Methods for Measuring the Intellectual Capital of the Region: Approaches and Assessments," Studies on Russian Economic Development, Springer, vol. 33(3), pages 311-316, June.

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    More about this item

    Keywords

    regional inequalities; economic growth; sigma– and beta–convergence; Granger causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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