The opening of the North–South divide: Cumulative causation, household income disparity and the regional bonus in Taiwan 1976–2005

Martin Andersson () and Martin Klinthäll

Structural Change and Economic Dynamics, 2012, vol. 23, issue 2, 170-179

Abstract: During the last decades regional income divergence seems to have reappeared in both developed and developing countries. In Taiwan – a renowned case of growth with equity – regional per capita income was converging until the early 1990s after which it began to diverge. With the help of modeled annual household survey data from 1976 to 2005 we indicate the magnitude of a regional bonus and discuss reasons behind the re-opening of the North–South income divide in Taiwan. Our analysis suggests that this process is a consequence of cumulative causation connected to the advent of the rise of ICT industry in conjunction with changes in Taiwan's political economy which provided relatively more advantageous economic opportunities for the industrial structure of the leading region.

Keywords: Regional income dynamics; Cumulative causation; Spatial inequality; Industrialisation; Taiwan (search for similar items in EconPapers)
JEL-codes: N00 O14 O53 R11 R12 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:23:y:2012:i:2:p:170-179

DOI: 10.1016/j.strueco.2012.02.001

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