The magnification of a lagging region’s initial economic disadvantages on the balanced growth path
Amitrajeet Batabyal () and
Peter Nijkamp ()
Additional contact information
Peter Nijkamp: Tinbergen Institute
Asia-Pacific Journal of Regional Science, 2019, vol. 3, issue 3, No 4, 719-730
Abstract We analyze aspects of long-run economic growth in stylized lagging and leading regions. Both regions use physical capital, research and development (R&D), and knowledgeable workers to produce a final consumption good. The lagging region faces two key economic disadvantages. Specifically, the constant fractions of the output of the final consumption good that are saved to enhance the stocks of physical capital and R&D are assumed to be twice as large in the leading region, as they are in the lagging region. In this scenario, we perform three tasks. First, we determine the ratio of the balanced growth path (BGP) value of output per knowledgeable worker in the leading region to its value in the lagging region. Second, we ascertain the ratio of the BGP value of R&D per knowledgeable worker in the leading region to its value in the lagging region. Finally, we show the extent to which the lagging region’s initial economic disadvantages are magnified on the BGP and then discuss some policy implications.
Keywords: Economic growth; Lagging region; Leading region; Magnification effect (search for similar items in EconPapers)
JEL-codes: R11 O18 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s41685-019-00118-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: The Magnification of a Lagging Region's Initial Economic Disadvantages on the Balanced Growth Path (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:3:y:2019:i:3:d:10.1007_s41685-019-00118-7
Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685
Access Statistics for this article
Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano
More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla ().