The Impact of Regional Disparities on Economic Growth

• Main Authors: Henryk Gurgul, Łukasz Lach
• Format: Article
• Language: English
• Published: Wrocław University of Science and Technology 2011-01-01
• Series: Operations Research and Decisions
• Online Access: http://orduser.pwr.wroc.pl/DownloadFile.aspx?aid=181

The authors investigated how economic growth affects the disparity in the distribution of regional income in Poland and vice versa. The research was based on annual data covering the period 2000-2009. In general, the research was divided into two main parts. First, the authors examined the evolution of the level of spatial inequalities in income in Poland over the last decade using the concepts of sigma and beta convergence. Next the nature of causal dependences was investigated between this inequality and economic growth. It was found that Polish regions did not converge with respect to the distribution of income as total GDP grew. The second part of the research provided evidence to claim that this inequality caused growth. Moreover, the evidence was also found that growth affected regional inequality. Finally, the authors noticed that the effects of both these factors were positive. The results suggest that as a consequence of rapid economic growth, some regions in Poland seized new opportunities, while less developed regions were unable to keep up with the challenging requirements of a decade of fast economic growth. (original abstract)