Your SlideShare is downloading. ×
  • Like
  • Save
Chapter 6: Regional Disparities
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Chapter 6: Regional Disparities

  • 1,926 views
Published

 

Published in Technology , Economy & Finance
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,926
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Space and Economics Chapter 6: Regional disparities Author Wim Heijman (Wageningen, the Netherlands) August 10, 2009
  • 2. 6. Regional disparities 6.1 Principles 6.2 The regional economic structure 6.3 Evaluation of the three regions 6.4 Shift and share analysis 6.5 Regional economic implications 6.6 A disparity measure: the gini coefficient 6.7 Allocation of structural funds and changing regional income distribution 6.8 Application: regional disparities in Romania 6.9 Application: shift share analysis of China 6.10 Clusters and shift share analysis
  • 3. Figure 6.1: Income distribution (GDP per inhabitant, NUTS 2 level, 2003).
  • 4. 6.1 Principles Figure 6.2: Deviation of income concepts in terms of percentage from the Dutch average (per capita) in 1997.
  • 5. 6.1 Principles 1 0.9 0.8 0.7 0.6 HDI 0.5 0.4 0.3 0.2 0.1 0 0 10000 20000 30000 40000 50000 60000 70000 GDP Figure 6.3: GDP and HDI of the 27 EU countries in 2005
  • 6. 6.1 Principles Table 6.1: Employment (number of jobs) in three regions in 1992 and 2002. x1000 1992 2002 index 2002 (1992=100) Greece 3807 3914 103 The Netherlands 6986 8340 119 Ireland 1155 1765 153 EU15 157991 170550 108 Source: European Commission (2004).
  • 7. 6.2 The regional economic structure Table 6.2: Economic structure of the EU15-countries. Number of jobs x1000 Index 2002 sector 1992 2002 (1992=100) Services 103116 121056 117 Industry 45794 42638 93 Agriculture 8843 6822 77 Total 157911 170550 108 Source: European Commission (2004).
  • 8. 6.2 The regional economic structure EU15 Greece agriculture 6% agriculture 24% industry 29% services 51% services 65% industry 25% Figure 6.4: Regional economic structure (employment) of Greece compared to the structure of EU15 in 1992.
  • 9. 6.2 The regional economic structure EU15 The Netherlands agriculture Agriculture 6% 4% Industry industry 24% 29% services 65% Services 72% Figure 6.5: Regional economic structure (employment) of The Netherlands compared to the structure of EU15 in 1992.
  • 10. 6.2 The regional economic structure EU15 Ireland agriculture agriculture 6% 14% industry 29% industry services services 28% 58% 65% Figure 6.6: Regional economic structure (employment) of Ireland compared to the structure of EU15 in 1992.
  • 11. 6.3 Evaluation of the three regions Table 6.3: Evaluation of the expected economic growth of the three regions. Greece The Netherlands Ireland Economic structure — + — Specific regional circumstances — — ++ Total — +/— +
  • 12. 6.4 Shift and share analysis Table 6.4: Example shift and share analysis. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) i Wij0 Wijt Wi0 Wit Wijt (2)- (7) n (7)-(9) Wij 0 Wi 0 Wit Wit ∑Wit Wij 0 n n Wij 0 Wi 0 Wi 0 i =1 n Wij 0 ∑W ij 0 ∑W i0 ∑W i =1 i0 i =1 i =1 1 6 6 7654 6956 1.00 0.91 5.45 0.55 6.26 -0.81 0.01 0.05 2 205 182 45148 45387 0.89 1.01 206.09 -24.09 214.03 -7.95 0.35 0.31 3 105 93 36909 38580 0.89 1.05 109.75 -16.75 109.63 0.13 0.18 0.25 4 193 228 15571 18202 1.18 1.17 225.61 2.39 201.50 24.11 0.33 0.11 5 78 68 41536 44162 0.87 1.06 82.93 -14.93 81.44 1.49 0.13 0.28 Σ 587 577 146818 153287 629.83 -52.83 612.86 16.97 1.00 1.00 Wij0: Employment in sector i in region j in year 0 (starting year). Wijt: Employment in sector i in region j in year t (final year). Sector 1: Agriculture, hunting, forestry and fishing; Sector 2: Industry; Sector 3: Commercial Services; Sector 4: Financial intermediation, real estate, renting and business activities; Sector 5: Public Services.
  • 13. 6.4 Shift and share analysis Table 6.5 Results of shift share analysis Actual Shift Differential Shift Proportionality Shift n Wt n n  Wit  n W W  S a = ∑Wijt − ∑Wij 0 S d = ∑ Wijt −  Wij 0  = −52.83 S p = ∑  it Wij 0 − t Wij 0  = 16.97    W0 i =1 i =1  Wi 0  i =1  Wi 0 W0  i =1 = 577 − 153287 × 587 = − 35.86 S p = Sa − Sd 146818 = —35.86 — (—52.83) = 16.97 Relative Actual shift: Relative Differential shift: Relative Proportionality Shift: − 35.86 − 52.83 16.97 RS a = = −0.06 RS d = = −0.09 RS p = = 0.03 587 587 587
  • 14. Figure 6.7: Selected NUTS 2 area’s in the EU15
  • 15. 6.4 Shift and share analysis Figure 6.8: Results
  • 16. 6.5 Regional economic implications Figure 6.9: left: areas with a high density of logistics and transport; right: areas with more than 200 inhabitants /km2
  • 17. 6.5 Regional economic implications Table 6.6: Boudeville classification. Type 1: RS p > 0, RS d > 0, RS p > RS d . So: RS a > 0. Type 2 RS p > 0, RS d > 0, RS p < RS d . So: RS a > 0. Type 3 RS p < 0, RS d > 0, RS p < RS d . So: RS a > 0. Type 4 RS p > 0, RS d < 0, RS p > RS d . So: RSa > 0. Type 5 RS p > 0, RS d < 0, RS p < RS d . So: RSa < 0. Type 6 RS p < 0, RS d > 0, RS p > RS d . So: RSa < 0. Type 7 RS p < 0, RS d < 0, RS p < RS d . So: RS a < 0. Type 8 RS p < 0, RS d < 0, RS p > RS d . So: RS a < 0. Source: Boudeville, 1966.
  • 18. 6.6 A disparity measure: the gini coefficient Table 6.7: Distribution of income. (1) (2) (3) (4) (5) (6) (7) income number of total % % % % class people income people people acc. income income acc. 0-10 2 10 20 20 5.0 5.0 10-20 3 45 30 50 22.5 27.5 20-30 3 75 30 80 37.5 65.0 30-40 2 70 20 100 35.0 100.0 Total 10 200 100 100.0
  • 19. 6.6 A disparity measure: the gini coefficient y 100 D C 65 50 B 27.5 A 5 O E 0 10 20 30 40 50 60 70 80 90 100 x Figure 6.10: Lorenz curve.
  • 20. 6.6 A disparity measure: the gini coefficient The Brown Formula: OABCD OED - OEDCBA g= = = OED OED m ( ) m ( )( ) 0.5 × 100 × 100 − ∑ xi − xi −1 yi −1 − 0.5 ∑ xi − xi −1 yi − yi −1 = i =1 i =1 = 0.5 × 100 × 100 m =1− ∑ x − x(i i −1 i )( y +y i −1 . ) i =1
  • 21. 6.6 A disparity measure: the gini coefficient 0.5 × 100 × 100 − 0.5 × 20 × 50 − 5 × 30 − 0.5 × 22.5 × 30 − 30 × 27.5 − 0.5 × 37.5 × 30 − 20 × 65 − 0.5 × 35 × 20 g = = 0.5 × 100 × 100 5000 - 3575 = = 0.285. 5000 Approximat ion : g = x − y.
  • 22. 6.7 Allocation of Structural Funds and changing regional income distribution β γ Fi = αPi I i , LnFi = Lnα + βLnPi + γLnI i . LnFi = − 0.42158 + 1.43129 LnPi − 0.33426 LnI i . R 2 = 0.87 ( −2.64 ) ( 7.19 ) ( −2.05 )
  • 23. Share in Structural Funds (%) 0 5 10 15 20 Austria 25 Belgium Denmark Finland France Germany Great Britain Greece Ireland Italy Luxembourg Real allocation Netherlands Portugal Spain Sweden Cyprus Czech Republic Predicted allocation Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia 6.7 Allocation of structural funds and changing regional income distribution
  • 24. Figure 6.12: GDP growth in the EU 1995 2004
  • 25. 6.7: Allocation of structural funds and changing regional income distribution GDPi 2005 = αYi join + β , g 2005 i = γYi join +δ, GDPi 2005 = − 398.057 Yi join + 815,566.7, R 2 = 0.556. ( −5.367 ) ( 5.540 ) g i2005 = 0.075735Yi join − 146.558, R 2 = 0.353. ( 3.619 ) ( −3.528 )
  • 26. 6.8: Application: regional disparities in Romania population-GDP disparity, 1998 population-GDP disparity, 2002 100% 100% 80% 80% cumulative income (%) cumulative area (%) 60% 60% 40% 40% 20% 20% 0% 0% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% cumulative population (%) cumulative population (%) Figure 6.13: Income distribution for Romania 1998 (g = 0.156) and 2002 (g = 0.205).
  • 27. 6.8: Application: regional disparities in Romania population-GDP disparity, 1998 population-GDP disparity, 2002 100% 100% 80% cumulative income (%) 80% cumulative area (%) 60% 60% 40% 40% 20% 20% 0% 0% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% cumulative population (%) cumulative population (%) Figure 6.14: Distribution of population in Romania for 1998 (g = 0.246) and 2002 (g = 0.253).
  • 28. 6.8: Application: regional disparities in Romania GDP-area disparity, 1998 GDP-area disparity, 2002 100% 100% 80% cumulative income (%) 80% cumulative income (%) 60% 60% 40% 40% 20% 20% 0% 0% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% cumulative area (%) cumulative area (%) Figure 6.15: Spatial distribution of production in Romania for 1998 (g = 0.288) and 2002 (g = 0.314). .
  • 29. 6.8: Application: regional disparities in Romania Romania 2002 / Euro per inhabitant 1105 - 1837 1837 - 2568 RO016 2568 - 3300 RO041 RO034 RO043 3300 - 4032 RO015 RO033 4032 - 4763 RO014 RO040 RO037 RO023 RO036 RO030 RO013 RO048 RO011 RO010 RO042 RO018 RO025 RO046 RO031 RO050 RO044 RO020 RO047 RO039 RO017 RO022 RO049 RO029 RO012 RO026 RO032 RO019 RO035 RO038 RO021 RO024 RO027 RO045 RO028 0 300 Kilometers N Figure 6.16: Romania: regional income distribution (in Euro’s) in 2002.
  • 30. 6.8: Application: regional disparities in Romania Romania 2002 / Income per km2 51 - 78 78 - 125 RO016 125 - 197 RO041 RO034 RO043 197 - 368 RO015 RO033 368 - 38707 RO014 RO040 RO037 RO023 RO036 RO030 RO013 RO048 RO011 RO010 RO042 RO018 RO025 RO046 RO031 RO050 RO044 RO020 RO047 RO039 RO017 RO022 RO049 RO029 RO012 RO026 RO032 RO019 RO035 RO038 RO021 RO024 RO027 RO045 RO028 0 300 Kilometers N Figure 6.17: Romania: Territorial income distribution (in Euro’s) in 2002. .
  • 31. 6.9: Application: Shift share analysis of China Figure 6.18: Population density in China 2004
  • 32. 6.9: Application: Shift share analysis of China Table 6.8: Gini-coefficients for China Gini-coefficient 1996 2004 increase Population density 0.6404 0.6440 0.56% GDP 0.2401 0.2696 12.28% Territorial density of GDP 0.7175 0.7322 2.05% Source: Jingjing (2007).
  • 33. 6.9: Application: Shift share analysis of China Figure 6.19: GDP per capita 2004.
  • 34. 6.9: Application: Shift share analysis of China Figure 6.20: Territorial GDP distribution 2004
  • 35. 6.9: Application: Shift share analysis of China Figure 6.21: Relative actual shift
  • 36. 6.9: Application: Shift share analysis of China Figure 6.22: Relative differential shift
  • 37. 6.9: Application: Shift share analysis of China Figure 6.23: Relative proportionality shift
  • 38. 6.10: Application: clusters and shift share analysis 100,00 100,00 80,00 80,00 Hugginsrank 60,00 Hugginsrank 60,00 4 0,00 4 0,00 20,00 20,00 0,00 0,00 -0,04 -0 ,03 -0,0 2 -0,01 0,0 0 0,01 0,02 0,03 0,04 -0,10 0,00 0,10 0,20 relative proportionality shift relati ve differential shift Figure 6.24: Figure 6.24: Scatter diagram of Huggins rank and relative differential shift (left panel), and relative proportionality shift (right panel) for European regions (NUTS 2).