 Asymmetries in regional development: Does TFP or capital accumulation matter for spatial inequalities?The Journal of Economic Asymmetries, 2019, vol. 20, issue C Abstract: In the literature on regional inequalities, commonly adopted Neo-Classical theoretical framework (Y=AKα(hL)1−α) implies that disparities may arise for two reasons, either due to differences in factor endowments or TFP differentials. In the current study, we address the following rarely examined questions: i. Do regional income inequalities arise due to TFP or factor endowment disparities across regions? ii. What's their relative contribution to the level of and change in regional inequality? Our dataset covers the period 2004–2014 and 81 Turkish provinces. We use mathematical decompositions, Panel unit root, panel VAR and generalized impulse-response analyses. Results are summarized in two groups. First, the main contributor to income inequality is the disparity in regional factor endowments, whereas TFP differentials are relatively less influential. Second, the main source of decline in disparities seems to be the narrowing of TFP differences. Keywords: Regional inequality; TFP; Factor endowments; VAR variance decomposition (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:20:y:2019:i:c:s1703494919300064 DOI: 10.1016/j.jeca.2019.e00119 Access Statistics for this article The Journal of Economic Asymmetries is currently edited by A.G. Malliaris More articles in The Journal of Economic Asymmetries from Elsevier |
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