Measuring neighbouring effects on poverty in regional economies

Changkeun Lee and Euijune Kim

Applied Economics Letters, 2020, vol. 27, issue 2, 104-112

Abstract: Using the concepts of poverty trap and neighbouring effect, this paper explores whether the economies of low-income regions and high-income regions respond differently to national economic fluctuations. It identifies an asymmetric pattern of regional income change in low-income regions of Korea due to a relatively small population size and weak urbanization economies. These low-income regions could increase their income levels by 3.75% if they succeeded in developing a symmetric relation to national economic fluctuations. Spatial proximity between high- and low-income regions can generate greater backwash (negative) effects on the economic growth of low-income regions than spread (positive) effects.

Date: 2020
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DOI: 10.1080/13504851.2019.1610694

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