Taxonomic Measure of Development (TMD) with the inclusion of spatial dependence

Michal Pietrzak

No 10/2014, Working Papers from Institute of Economic Research

Abstract: The subject of the article concerns the question of the use of a taxonomic measure of development (TMR) in spatial economic analyses under the conditions of spatial dependence. Positive spatial dependence is observed for the majority of economic phenomena. This forces the inclusion of this dependence in the construction of the measure, thus providing a spatial taxonomic measure of development (pTRM). Therefore, the aim of this article is to develop a proposal for the construction of a spatial taxonomic measure of development. Spatial dependence will be taken into account in the design of the meter by using the potential strength of the interaction between the regions. As a result, a spatial taxonomic measure of development will allow the trend in the analyzed phenomena to be determined. The construction of the spatial taxonomic measure of development (pTMR) proposed in the article was applied in the study of the spatial economic development level of Polish subregions (NUTS 3) in 2011. The analysis allowed us to assess the economic situation in Poland and to identify trends in the economic development of subregions.

Keywords: regional development; numeric taxonomy; Taxonomic Measure of Development; spatial econometrics; spatial dependence (search for similar items in EconPapers)
JEL-codes: C21 O11 R11 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-03, Revised 2014-05
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (3)

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