Regional Economic Convergence Research Articles

The Effect of International Tourist Arrivals on Regional Development in East Nusa Tenggara (NTT) Province

The government of Indonesia has established Komodo National Park as one of the priority tourist destinations since 2015 to stimulate the number of international tourist arrivals to Komodo National Park, located in West Manggarai Regency, East Nusa Tenggara Province (NTT). This study aims to analyze the spillover effect of the surge of international tourists in Komodo National Park and its impact on the regional economy in NTT. This study used the Spatial Autoregressive (SAR) and Spatial Durbin Model (SDM) methods on district-level data from 2012 to 2018 and found that the surge of international tourists visiting Komodo National Park had a positive and significant spillover effect on the increase of tourism activities in other tourist destinations in NTT. The rise of tourism activity impacted regional economic growth significantly in West Manggarai Regency and other districts in NTT, and the tourism growth positively influenced the regional economic convergence in NTT.

Extra-Regional Influence on the Development of Economic Integration in the ASEAN Region

This study discusses the extra-regional influence and scenarios for the development of regional integration of the countries of the Association of States Southeast Asia (ASEAN), in particular, the role of the future free trade agreement between the EAEU and Indonesia in maintaining the effect of convergence in Southeast Asia (Southeast Asia) in the horizon of 2025.Aim. To Determine the main trends in the development of extra-regional influence and forecasts for regional economic convergence in ASEAN countries by 2025.Tasks. Determine the trends and perspective scenarios for the development of the integration of the countries of Southeast Asia.Methods. Both the descriptive method and the system analysis method are used. Also, this study uses the approaches of the Eurasian Development Bank to assess the disproportion in the level of development of the ASEAN countries (macroeconomic indicators; in the analysis of time series of GDP, GDP per capita for ASEAN countries, the Box-Jenkins methodology (ARIMA) is used. The key concept in this study is convergence. Convergence is seen as the process of approaching a certain level or decreasing the difference between two values over time [7]; real convergence contributes to the convergence of the economic level of countries within an integrated group (differences in the economic levels of development of countries hinder the process of integration). The effect of real economic convergence for ASEAN countries in the future 2025 can take on different meanings depending on the implementation of the initiatives proposed by non-regional actors (for example, Indo-Pacific Economic Structure and FTA between the EAEU and Indonesia).Results. The results of the study present four probability-ranked scenarios for the development of regional economic convergence in the ASEAN countries. It has been established that the most likely scenario is one in which the initiative of the EAEU and the Republic of Indonesia will take place, while the Indo-Pacific Economic Structure proposed by the United States will not be implemented by 2025. In this case, regional economic convergence in the ASEAN countries may take on the most favorable meaning.Conclusions. Along with the global trend, the expansion of economic integration through the creation of free trade zones with other integration associations, the development of economic integration in the region is influenced by the rivalry between the People’s Republic of China and the United States of America. Looking forward to the mid-second half of the 2020s. years as a result, the adoption of a free trade agreement between the EAEU countries and the Republic of Indonesia will have a positive impact on the increase in the pace of regional economic convergence in Southeast Asia.

Reflections on Regional Economic Convergence and Higher Education Funding in China

The improvement of the quality of labor is a fundamental element in promoting national economic development, and the value created by high-level human capital will continue to be demonstrated in the rapid development of society. According to the relevant provisions of human capital theory, the impact of human capital on regional economic growth is mainly considered from two aspects: the "quantity" and "quality" of human capital. According to relevant empirical results, there is a strong autocorrelation between higher education investment and advanced human capital in geographical space. The direct and indirect spillovers of technological innovation effects in advanced human capital can both promote economic growth. Therefore, many educators, economists, and others view the country's financial investment in education as an endogenous variable for regional or even national economic development. In the following research, the author takes the economic convergence of the eastern, central, and western regions of China as the starting point to explore the relationship between higher education investment, human capital structure, and regional economic growth, and to study the internal relationship between higher education and regional economy.

Regional economic convergence in federation contexts: a comparative analysis of Brazil and the European Union

ABSTRACT This article examines regional economic convergence in two federal contexts: Brazil and the European Union. Despite many differences, in the last decades these two economies have shown irregular economic growth and been facing economic inequalities, launching public policies to reduce them. We analyse the tendencies of regional convergence within these economies between 2002 and 2019, focusing on σ-convergence, absolute convergence, convergence clubs and the transitional behaviour of club members. The results show that in both cases convergence occurs, but at a slow rhythm, especially in the European Union.

Innovation and regional economic convergence: evidence from China

Innovation and regional economic convergence: evidence from China

Coordinated Development Strategy of the Beijing-Tianjin-Hebei Region and Regional Economic Convergence

This paper selected panel data of Beijing-Tianjin-Hebei and other eastern regions except Beijing- Tianjin-Hebei from 1999 to 2018. The economic convergence model, double difference method and twoway fixed effect model are used to study the influence of Beijing-Tianjin-Hebei coordinated development strategy on regional economic convergence. It is found that (1) the Beijing-Tianjin-Hebei coordinated development strategy has a negative effect on the economic growth of Beijing-Tianjin-Hebei as a whole, Tianjin city and Hebei province, the positive effect on Beijing is gradually significant, and the intra-regional economy shows a fluctuating dispersion trend; (2) the economic gap between Tianjin and Hebei Province and the rest of the east, as well as between the rest of the east and Beijing, has narrowed. The economy of the eastern region as a whole shows convergence, but the speed of convergence is relatively slow; (3) the Beijing-Tianjin-Hebei coordinated development strategy strengthens the role of human capital in driving regional economic growth, while the effect on the economic growth of other factors is insignificant or negative. Therefore, the policy dividend needs to be further stimulated.

Regional income convergence in Colombia: population, space, and long-run dynamics

We examine the trajectory of regional income dynamics in Colombia. Using data on all 33 Colombian departments from 2000 to 2016, we employ extensions of (spatial) Markov chains, space-time mobility measures, along with a fully weighted version of the distribution analysis approach. By considering these extensions, our analysis enables us to answer questions such as whether the role of spatial context influences the distributional dynamics of Colombian departments, or the magnitude of the moderating effect of department’s population. The inclusion of additional measures such as the asymptotic half-life of convergence provides additional results, informing on how long it would take to reach the hypothetical long-run distribution of per capita income. Results, which are reported for both pre- and post-2008 trends, complement previous literature on regional economic convergence in a relevant South American context, showing stronger convergence patterns when controlling for the population living in each department. The patterns do not particularly intensify when controlling for spatial spillovers, since the role of spatial context was already playing a relevant role from the beginning of the period analyzed. Therefore, although the ergodic distributions show a conditional-convergence pattern, addressing the problems of spatial exclusion fully, persistent polarization among geographical departments and populations, along with the relevant core-periphery gaps, still requires the design and implementation of specific policies.

The Impact of Foreign Direct Investment on Regional Economic Growth and Income Convergence a Panel Data Study in China

Previous studies regarding the impact of FDI on regional economic growth and income convergence in China have mixed results and are far from being conclusive due to different datasets and methodologies used. This study thus used a panel data from China Statistical Yearbook covering all 31 Chinese regions to better understand the impact of FDI on regional economic growth and income convergence in China. For the period between 1999 and 2017, it found that neither FDI inflow nor labor has a statistically significant impact on the provincial economic growth. However, domestic investment in fixed assets does have a statistically significant impact on the provincial economic growth. Moreover, there is no absolute ? income convergence among regions. Nonetheless, there is a conditional ? income convergence (a moderate convergence speed of 7.49%) after controlling for all other growth factors: domestic investment in fixed assets, population growth rate, FDI inflow, export, and higher education enrollment.

EVOLUTION OF CONVERGENCE THEORY IN THE CONTEXT OF INTEGRATION OF THE SOCIO-ECONOMIC SYSTEM OF REGIONS

The article considers the processes of convergence and divergence in the regional space and identifies the main differences. It is established that the representatives of the first theory insist on the need to unite and converge economies, while divergent see the effective economic development of regions by concentrating all resources in potentially developed areas. Theoretical phenomena about the nature, forms and nature of regional development are constantly expanding and improving. The generally accepted basis of regional economy is the concept of regional development, which is divided into two opposing theories: the first theory - advocate the possibility of convergent regional development, the second theory - insists on the divergence of levels of regional development. If the first theory insists on the need to unite and bring economies together, divergent see the effective economic development of regions by concentrating all resources in potentially developed areas. The vast majority of researchers use convergence in terms of global scale and global space, but according to the author, it is regional economic convergence that has a good chance of realization and growth rate more successful than the process of convergence of economies. It is worth noting that the regions of one country have similar territorial, economic, political and social characteristics, which allows us to consider the process of their convergence on different grounds. If we talk about countries and their rapprochement, then, firstly, this process is long-term and risks not "catching up" with constant technological and global changes, as each country is in its own technological structure, and secondly, there are a number signs that the convergence of the economies of certain countries is unlikely or partial, and as a result, the expected equalization of the level of development of economic economies will be difficult to achieve. Therefore, taking into account the positions of the considered researchers, we consider it expedient and effective to study the processes of economic convergence in terms of convergence of levels of regional development.

Bulgarian NUTS2 Regions’ Beta- and Sigma- Convergence Towards the Eurozone

In this scientific article Bulgarian regional economic convergence has been investigated in the 2000 – 2018 period. Beta- and sigma-convergence tests have been performed on Bulgarian regional data using level 2 Nomenclature of Territorial Units for Statistics (NUTS 2). By using panel econometric modelling Gross domestic product (GDP) per capita and structural Gross value added (GVA) are subject to the economic convergence investigation. Bulgarian NUTS 2 regions seem to converge with the average value for the Eurozone, however the upward development is quite uneven. The results suggest that unconditional beta-convergence can be justified for both types of variables and it can be concluded that Bulgarian regions narrow the gap with the Eurozone averages. Perhaps the sigma-convergence hypothesis cannot be justified since differences among regions grow with time. The most economically and socially developed NUTS 2 region in Bulgaria, Yugozapaden region, widens the gap with the rest five regions in respect to GDP per capita and differs considerably in terms of the structure of GVA. At the beginning of the period GVA generated by less productive economic activities in Agriculture, forestry and fishing took a larger share in GVA in comparison to the Eurozone but managed to converge at the end of the period.

Retraction Note: Prediction of mountain green vegetation coverage based on wireless sensor network and regional industrial economic convergence

Retraction Note: Prediction of mountain green vegetation coverage based on wireless sensor network and regional industrial economic convergence

The Impact of Foreign Direct Investment on Income Convergence in China - A Spatial Panel Data Analysis

After taking into account the spatial dependence effects in the panel data consisting of all 31 provinces, direct-controlled municipalities, and autonomous regions in China between the years 1998 and 2017, it found significant spatial autocorrelation effects in both traditional absolute and conditional β income convergence models. At the national level, using the spatial econometric models (Spatial Error Model for absolute convergence and Spatial Durbin Model for conditional convergence), the analysis shows that in the past 19 years from 1999 to 2017, there is no absolute β income convergence. However, there is conditional β income convergence after controlling for all growth factors, while the positive effect of fixed asset investment on regional economic growth is significant, and the effect of population growth is significantly negative. The other growth factors such as FDI inflow, export, and higher education enrollment were surprisingly found no statistically significant effects on regional economic growth. From regional level (Spatial Durbin Model and Spatial Lag Model), there is no conditional β income convergence within each four economic regions. Nonetheless, the northeast region showed an income divergence trend, where only the fixed asset investment is positively significant. This study results imply that China should continue to improve fixed asset investment and control population growth to stimulate regional economic growth and income convergence.

The impact of high-speed railway on urban housing prices in China: A network accessibility perspective

Applying the social network analysis (SNA) approach, this paper investigates the impact of high-speed rail (HSR) on urban housing prices from the perspective of network accessibility. Based on a sample of 285 cities in China over 2009–2017, we find a positive effect of HSR network accessibility on urban housing prices. An increase in HSR network accessibility (i.e., degree point or closeness centrality) by one standard deviation causes about a 10.3% increase in average housing prices. Evidence also suggests that this effect varies across regions and housing types. Our results are robust to different model specifications and alternative measures of HSR accessibility. The findings offer insights into the space–time economic laws with important policy implications regarding spatial disparities and regional economic convergence in China.

RETRACTED ARTICLE: Prediction of mountain green vegetation coverage based on wireless sensor network and regional industrial economic convergence

RETRACTED ARTICLE: Prediction of mountain green vegetation coverage based on wireless sensor network and regional industrial economic convergence

Regional Economic Convergence in China: A Comparative Study of Nighttime Light and GDP

Nighttime lights (NTLs) have been used as a proxy for economic growth in recent years. To verify the effectiveness of NTL in measuring regional economies, this article studies the regional economic convergence phenomenon in China’s provinces by a comparative analysis of NTL data and GDP data from 1992 to 2013. It is found that there is a significant difference between the results of club convergence between NTL and GDP; GDP high-growth clubs are mainly concentrated in the east and central areas, while NTL’s high-growth clubs are mostly concentrated in the central and west areas. Besides, the growth rate gaps between GDP clubs are relatively flat, while the growth rate gaps between NTL clubs are large. From the perspective of influencing, factors of the regional convergence, technological innovation, and industrial structure have a significant impact on GDP and NTL, and industrial structure has opposite effects on GDP clubs and NTL clubs. Besides the above factors, for NTL convergence clubs, population growth rate, economic openness, and resource consumption are also significant.

THE LEVEL OF ECONOMIC DEVELOPMENT AS A FACTOR SHAPING THE REGIONAL DISPARITIES

The results of some empirical studies within the EU determining the relationship between the achieved level of economic development and the specific economic structure on the one hand and the magnitude of intra-regional differences on the other are presented and analysed. Based on comparative analysis, the expected evolution of the regional disparities in Bulgaria are defined. The possibilities for pursuing a targeted policy for achieving regional economic convergence have been assessed.

Energy infrastructure investment and regional inequality: Evidence from China's power grid

Effective energy infrastructure investment strategy could optimize the reallocation of energy resources, promote the coordinated development across regions, and narrow the regional development inequality. This paper, from the perspective of inclusive growth, investigates how the energy infrastructure investment could affect the regional economic growth, based on the evidence of China's power grid during 2000–2014. The “Effective Cost Index” (ECI) is formulated to measure the development degree of power grid infrastructure (PGI) at first. After that, the economic growth convergence model is adopted to analyze the impact of PGI on regional economic convergence by the method of system GMM. Moreover, different PGI investment scenarios are simulated to discuss what the optimal investment distribution is. The results present that the ECI can impact the regional economic growth negatively, and the PGI investment may generate higher marginal benefits for the less developed inland areas than the developed coastal areas. In China, the most effective way to narrow regional inequality is to distribute the PGI investment to the central hub provinces.

Empirical Analysis of Economic Growth Trend of Coastal Areas Based on Convergence Effect

Ma, R., 2020. Empirical analysis of economic growth trend of coastal areas based on convergence effect. In: Yang, Y.; Mi, C.; Zhao, L., and Lam, S. (eds.), Global Topics and New Trends in Coastal Research: Port, Coastal and Ocean Engineering. Journal of Coastal Research, Special Issue No. 103, pp. 33–36. Coconut Creek (Florida), ISSN 0749-0208.There are obvious imbalances in the economic development of coastal areas, which has attracted the attention of many scholars, among which the issue of regional economic growth differences and convergence is a research hotspot. Therefore, combined with the convergence effect, the empirical study of the economic growth trend of coastal areas. To obtain the difference of economic development in coastal areas, including absolute difference trend analysis and relative difference trend analysis. Based on this, the paper constructs the convergence and convergence test model, including β convergence and its test model, σ convergence and its test model, club convergence and its test model. Take a coastal province as an example, empirical analysis of economic growth trend. The results show that: From 2011 to 2017, no coastal region showed convergence in the economic growth, which is in a phase of convergence; From 2017 to 2019, the three regions all showed different degrees of convergence, but the convergence of the first region was not significant. On the basis of the results to discuss the coastal areas of economic growth.

Development policy and regional economic convergence: The case of Tunisia

AbstractRegional disparities continue to be a major concern for the regional policies and regional development of developing countries. Unfinished reforms and the growth of regional disparities imply the need of intervention for economic convergence. Prominent recent studies on economic convergence have mainly focused on the regions of developed countries. This article assesses the speed of economic convergence of the Tunisian economy during the period 1985–2016. The economic performance of a region is influenced by the activities of neighbouring regions. Regional interdependence is determined by a preliminary diagnosis of autocorrelation within the 24 Tunisian spatial units. Spatial autocorrelation is explicitly introduced in the convergence regression of observed growth. This makes it possible to correct the problems resulting from the inefficiency of the estimators and to quantify, according to the model of the correlation detected, the speed of regional economic convergence. Our results suggest that convergence does exist, but at a slow speed. Therefore, appropriate public policies can rapidly change the speed of convergence and enable the least developed territories to catch up economically.

Regional Economic Convergence and Spatial Spillovers in Turkey

Using sigma and beta convergence methods, this study tests economic convergence in Turkish NUTS-2 regions between 2004-2011. The findings of sigma convergence show that, in accordance with the literature, the interregional income gap decreases during economic recession periods and increases during economic expansion periods. The beta convergence results obtained by the cross-sectional and panel estimations indicate the existence of absolute convergence. In addition, spatial data analysis and beta convergence analysis provide strong evidence for the existence of spatial autocorrelation in regional income distribution and show that the spatial dimension should be taken into account in convergence analyses.