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An OECD working paper measures contributions of regions to aggregate growth

In line with the research-results disseminated on the occasion of the RURBAN conference, the OECD published a collectively authored working paper on the contributions of regions to aggregate growth in the OECD.

Authors recall that while national growth rates have converged in the period 1995-2009, there is an increasing disparity in GDP per capita between regions. Researchers decided to calculate the contribution of different types of regions to aggregate growth and to investigate the impact of agglomeration forces and convergence forces which are influencing growth in different types of regions.

They find out that a few large regions contribute disproportionately to total growth while many small regions provide marginal contributions (less than 0.7% each). However, because they are more numerous, the cumulated growth from these small regions outweighs the contribution of the large ones. Put in figures, 2.4% of regions (20) contribute to 27% of OECD countries aggregated growth while remaining 97.6% contribute 73% of aggregated growth.

In order to Compare predominantly urban and predominantly rural regions, the OECD distributed the regions in four groups depending on their initial level of GDP/capita and annual average growth rates:

1- rich regions growing above OECD average,

2- rich regions growing below OECD average,

3- less-developed regions growing above OECD average

4- less-developed regions growing below OECD average

From the graph, you can clearly see that “while many urban regions grew faster than rural ones, many rural regions also out-performed urban regions in terms of GDP per capita growth rates over the period’.

The paper concludes that opportunities for growth may exist in all regions. They also find out that the larger concentration of above average regional growth rates is concentrated in middle-sized regions.

The message sent to policy-makers is that while they should ensure that the few regions with largest contributions to growth remain competitive, ‘improving the performance of periphery and even lagging regions should not be neglected because their cumulated contribution is dominant’.

A scientific confirmation of article 174 of the EU treaty on territorial cohesion and a plea for place-based territorial development policies.

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26 March 2014

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🏔️🇪🇺 La Politique de Cohésion de l'Union européenne soutien les zones de montagne ! Dans le cadre de notre projet Montana174 on a identifié 25 solutions innovantes pour améliorer la vie des habitants des montagnes en abordant 5 problèmes clés des zones de montagne:🌐 L'innovation sociale et numérique🌍 L'atténuation et l'adaptation au changement climatique🗻 Le tourisme👩🏼‍🦰 La jeunesse et l'emploi🚉 La mobilité Dans ce contexte, la Maison de l'International de Grenoble vous propose de la documentation pour en savoir plus sur les solutions trouvées et qui ont été financées par la Politique de Cohésion.👉🏻 N'hésitez pas à nous contacter ou passez nous voir !Euromontana Commission européenne en France Europe in my region L'Europe s'engage en France Région Auvergne-Rhône-Alpes Alp'Europe Les Jeunes Européens - Isère Grenoble Capitale Verte Européenne 2022 ... See MoreSee Less
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Programas.UE - DPT
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📣 The FIRE-RES kick-off meeting is now taking place in Solsona (Spain)!

What is FIRE-RES?

A new EU-funded H2020 project (2021-2025) that aims to make Europe a fire-resilient continent 🔥🏠

👉 Follow us to learn more!

➡️En el contexto de experiencias en digitalización de las áreas rurales en Euskadi Goio Manrique, director de Organización y Transformación Digital de HAZI, ha explicado el Plan director de Euskadi para un Territorio Rural Inteligente e Innovación Digital.

#digitalización

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"We need more political ambition at EU level to improve rural #mobility, because we can't just use the same tools as for urban mobility" says our Director Marie Clotteau at @hazifundazioa event on smart #RuralAreas🌄

Get inspired by some digital tools for mountain mobility👇

🆕Start 2022 with some inspiration!

💡From #education to #SustainableTourism, #agriculture, rural services & more: discover 17 inspiring initiatives that make a positive change in mountain areas!🌄

👇Explore, share & transfer to your region👇
https://t.co/yJZuPXiQDk

📨In the next @Silver_SMEs newsletter, you will find out more about how mountain areas are coping with #ageing by developing the #SilverEconomy!

Discover the measures implemented by @DPTeruel in
🇪🇸 or @RegionDalarna in 🇸🇪 ! Subscribe to the newsletter👇
https://t.co/YK8dLGVBgF

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