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Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia University Of Miskolc Institute of World and Regional Economics 02 10 2008 Herl’any, Slovakia University of Miskolc REGIONAL CONVERGENCE AND DIVERGENCE IN THE VISEGRAD FOUR COUNTRIES DURING THE TRANSITION PERIOD Institute of World & Regional Economics Dániel KUTTOR Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia • Theoretical approach • Limitation of the target area • Analysis of the regional difference (based on GDP data) • Measurement of disparities on NUTS 2 level • Visualisation of inequalities • Conclusion University of Miskolc • Definition of research topic and motivation Institute of World & Regional Economics Content Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia The reasons, motivations for investigation: personal >>> partners, GIS; EU expansion >>> CRP; growing competition on the global market >>> CIP; EUROSTAT >>> data. University of Miskolc Measurement and visualization of territorial disparities (PhD) Institute of World & Regional Economics Definition of research topic and motivation Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia University of Miskolc Institute of World & Regional Economics V4 countries in Europe Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Convergence or divergence to Western Europe Source: Angus Maddison University of Miskolc 1900 1950 1960 1970 1980 1990 1995 2000 GDP per capita (1990 G-K dollars) Western Europe Eastern Europe Ratio 2893 1438 49,71% 4579 2111 46,10% 6896 3070 44,52% 10195 4315 42,32% 13197 5786 43,84% 15966 5450 34,14% 16860 4998 29,64% 19002 5804 30,54% Institute of World & Regional Economics V4 countries’ performance in 20th Century Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Convergence or divergence to Western Europe 40 Czech Republic 35 Hungary 30 Poland 25 Slovakia 20 15 95 9 96 9 97 9 98 9 99 0 00 0 01 0 02 0 03 0 04 0 05 9 1 1 1 1 1 2 2 2 2 2 2 Source: EUROStat What the tendencies on regional level? University of Miskolc 45 Institute of World & Regional Economics V4 countries’ performance in last decade Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Contradictory approaches • the growth is a spatially cumulative process, which results increasing inequalities (Myrdal, Krugman); • the regional differences disappear with the growth (Solow, Rostow); • Spatial inequalities depend on the level of development (Williamson); • „trade off” phenomenon. ? in V4 University of Miskolc the different theories of development and growth have traditions; Institute of World & Regional Economics Theoretical approach or background Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Generally 35 regions (CZ:8; HU:7, PL: 16, SK: 4) University of Miskolc Source: MapInfo Institute of World & Regional Economics Regions in V4 Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Comparison on national level, based on GDP per capita (PPP) 3,5 3,0 2,5 2,0 1995 1,5 2005 1,0 0,5 0,0 Cz Source: EUROStat Hu Pl Sk University of Miskolc Max/Min Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Rank 1995 # Rank 2005 GDP per capita, 2005, PPS Dániel Kuttor: 35900,6 cz01 Praha 1 cz01 Praha 33124,1 sk01 Bratislavský kraj 2 sk01 Bratislavský kraj REGIONAL CONVERGENCE AND DIVERGENCE 23489,0 hu10 Közép-Magyarország 3 hu10 Közép-Magyarország 02.10.2008 Herl’any, Slovakia 18184,4 cz03 Jihozápad 4 pl12 Mazowieckie of disparities GDP per capita (on PPS) Source: EUROStat cz02 Strední Cechy cz03 Jihozápad cz06 Jihovýchod cz08 Moravskoslezsko cz05 Severovýchod hu22 Nyugat-Dunántúl cz04 Severozápad hu21 Közép-Dunántúl cz07 Strední Morava sk02 Západné Slovensko pl22 Slaskie pl41 Wielkopolskie pl51 Dolnoslaskie pl63 Pomorskie pl42 Zachodniopomorskie pl11 Lódzkie sk03 Stredné Slovensko pl43 Lubuskie pl61 Kujawsko-Pomorskie hu23 Dél-Dunántúl pl21 Malopolskie hu33 Dél-Alföld sk04 Východné Slovensko pl52 Opolskie hu31 Észak-Magyarország hu32 Észak-Alföld pl62 Warminsko-Mazurskie pl33 Swietokrzyskie pl34 Podlaskie pl32 Podkarpackie pl31 Lubelskie 15792,4 15671,5 15252,2 14633,2 14539,0 14274,9 13658,2 13528,7 13393,1 12779,2 12386,0 12277,7 11862,2 11280,9 10660,1 10545,0 10455,0 10357,1 10012,9 9982,9 9798,5 9756,8 9662,9 9514,2 9483,6 9153,4 8781,9 8586,2 8500,5 7926,6 7838,9 University of Miskolc on NUTS 2 level 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Institute of World & Regional Economics Measurement cz04 Severozápad cz06 Jihovýchod cz05 Severovýchod cz07 Strední Morava cz08 Moravskoslezsko cz02 Strední Cechy pl12 Mazowieckie hu22 Nyugat-Dunántúl pl22 Slaskie hu21 Közép-Dunántúl sk02 Západné Slovensko pl51 Dolnoslaskie pl42 Zachodniopomorskie pl63 Pomorskie hu33 Dél-Alföld pl61 Kujawsko-Pomorskie hu23 Dél-Dunántúl pl41 Wielkopolskie pl43 Lubuskie pl52 Opolskie pl11 Lódzkie sk03 Stredné Slovensko hu31 Észak-Magyarország pl21 Malopolskie hu32 Észak-Alföld sk04 Východné Slovensko pl62 Warminsko-Mazurskie pl33 Swietokrzyskie pl31 Lubelskie pl34 Podlaskie pl32 Podkarpackie Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Comparison based on GDP per capita in % of the EU average 1995a00 N Mean Std. Error of Mean Median Mode Std. Deviation Variance Range Minimum Maximum Sum Valid Missing 35 0 51,549 3,3938 43,700 39,1(a) 20,0779 403,121 92,8 32,8 125,6 1804,2 Source: EUROStat University of Miskolc SPSS analysis of the regions Institute of World & Regional Economics Measurement of disparities on NUTS 2 level 1996a00 1997a00 1998a00 1999a00 2000a00 2001a00 2002a00 2003a00 2004a00 2005a00 35 0 51,54857 3,393779 43,7 39,1 20,07787 403,1208 92,8 32,8 125,6 1804,2 35 0 52,76 3,495089 44,9 41,5 20,67723 427,5478 94,6 33,9 128,5 1846,6 35 0 53,44286 3,492579 47 35,6 20,66237 426,9337 94,9 35,3 130,2 1870,5 35 0 53,64 3,522826 47,5 36,7 20,84132 434,3607 98 35,6 133,6 1877,4 35 0 53,54571 3,56625 48,6 42,8 21,09822 445,1349 101,6 34,6 136,2 1874,1 35 0 53,40571 3,609895 48,1 36,4 21,35643 456,097 103,3 33,7 137 1869,2 35 0 54,16571 3,921878 47,4 36,2 23,20214 538,3394 112 33,6 145,6 1895,8 35 0 55,20286 4,084462 48,3 64,2 24,164 583,8991 114 33,9 147,9 1932,1 35 0 56,68857 4,246879 48,2 34,6 25,12487 631,2593 119,7 34,6 154,3 1984,1 35 0 58,00286 4,265203 49,5 45,3 25,23328 636,7185 119,7 35,1 154,8 2030,1 Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Comparison based on GDP per capita in % of the EU average Box plot figure Source: EUROStat University of Miskolc SPSS analysis Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Comparison based on GDP per capita in % of the EU average Significant polarization! Source: GEODA & EUROStat University of Miskolc GEODA analysis Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia Regions by change University of Miskolc of GDP (1995-2005) Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Legend: 200% 175 - 200 % 150 - 175 % Source: MapInfo & EUROStat - 150 % Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia The ”trade off” phenomenon (1996-2005): 6 1,12 5 1,1 1,08 4 Annual percentage change in GDP 1,06 3 1,04 2 1,02 Source: EUROStat 2005 2004 2003 2002 2001 2000 1999 0,98 1998 0 1997 1 1996 1 Annual percentage change in Std. Deviation University of Miskolc Two cycles identifiable Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia The geographical aspect, i.e. west-east incline (1995/2005) 40000,0 35000,0 30000,0 25000,0 y = -697,49x + 20334 20000,0 15000,0 10000,0 5000,0 0,0 12,000 14,000 16,000 18,000 2005 20,000 22,000 24,000 40000,0 35000,0 30000,0 y = -1070,2x + 32860 25000,0 20000,0 15000,0 10000,0 5000,0 0,0 12,000 14,000 Source: EUROStat 16,000 18,000 20,000 22,000 24,000 University of Miskolc 1995 Institute of World & Regional Economics Measurement of disparities on NUTS 2 level Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia • the V4 countries could converge to Western European (EU) average measured on national level; • the polarization in every country means that the capital region has significantly higher growth potential and a faster convergence; • in contrast with the previous there are regions which although increased their GDP, but the GDP per capita values did not get closer the EU average; • in many cases the national convergences were due to just the growing capital regions (for instance the Czech Republic in the late 90es); University of Miskolc • at the same time the territorial disparities on regional level increased dramatically; Institute of World & Regional Economics Conclusions (1) Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia • Slovakia provide a good example, as the rapid economic growth has positive effect on the regions growth potentials; • the „trade off” phenomenon can be observed in CEE countries. University of Miskolc • the under-developed regions react more sensitive to the national stagnation or slow down (for instance: Hungary in the recent years); Institute of World & Regional Economics Conclusions (2) Dániel Kuttor: REGIONAL CONVERGENCE AND DIVERGENCE 02.10.2008 Herl’any, Slovakia [email protected] www.uni-miskolc.hu/~euint University of Miskolc Dakujem! Institute of World & Regional Economics Thank for Your attention!