The Contribution of Regions to Aggregate Growth in the OECD

Bibliographic Data

ID4042374
AuthorsEnrique Garcilazo (OECD—Regional Development Policy Division 2 rue André Pascal Paris 75775 CEDEX 16 France), Joaquim Oliveira Martins (0000-0003-3736-3035, OECD—Regional Development Policy Division 2 rue André Pascal Paris 75775 CEDEX 16 France)
Year2015
Volume91
Issue2
Pages205-221
Publication date2015-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomic Geography (JOURNAL)
Journal identifiersISSN: 0013-0095 • E-ISSN: 1944-8287
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecge.12087
OpenAlexW2234052533
LanguageEN
Citations received4
References cited21

This article investigates the contribution of regions to aggregate growth. We find a great degree of heterogeneity in the performance of Territorial Level 3 (TL3) regions of the OECD (Organization for Economic Cooperation and Development). The regional contributions to aggregate growth follow a power law, with a coefficient around 1.2 (in absolute terms). This implies that Few-Large (FL) regions contribute disproportionately to aggregate growth whereas Many-Small (MS) individual regions contribute only marginally. Because the large number of these smaller regions and the decay of their contribution to growth is slow (generating a fat tail distribution), their cumulated contribution is actually around two-thirds of aggregate growth

Aggregate (composite) · Aggregate data · Distribution (mathematics) · Econometrics · Economic geography · Economics · Growth model · Microeconomics · Statistics · Economic Growth and Productivity · Mathematics · Regional Development and Policy · Regional Economics and Spatial Analysis

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