Rate of Economic Convergence Process in the Polish Subregions in Yeras 1995-2006 as Assumed by the Solow Growth Model Cover Image

Szybkośc procesów zbiezności gospodarczej polskich podregionów w latach 1995-2006 w świetle modelu wzrostu gospodarczego Solowa
Rate of Economic Convergence Process in the Polish Subregions in Yeras 1995-2006 as Assumed by the Solow Growth Model

Author(s): Adrian Burdziak
Subject(s): Economy
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: economic convergence; Polish subregions; panel data econometrics; conditional convergence; Solow’s growth model.

Summary/Abstract: This article attempts to measure the speed of economic convergence in the Polish economy during the period 1995–2006. Analysis was conducted for the subregions, constituting NUTS III units. Empirical investigation referred to interregional convergence. The article presents the derivation of equations of conditional b–convergence based on the Solow growth model [1956]. The convergence coefficient depends on the sum of the rates of: growth of the number of employees, depreciation of the stock of the physical capital and growth rate of scientific knowledge as weighted against the share of labour effort in the product. Mentioned equation was the basis for estimation b–convergence coefficient using panel econometric methods. The main hypothesis was verified positively. During the period 1995–2006 Polish subregions converged. The annual rate of b–convergence for the production per capita was around 5%, while per worker – close to 3%. Statistical analysis was conducted using the variation index. In the case of the production volume per capita convergence process took place in absolute terms. The same cannot be said about the labour productivity in Polish subregions. The increase in interregional divergence and confirmation of b–convergence lead to assumption that further research is required.

  • Issue Year: 2010
  • Issue No: 1
  • Page Range: 25-56
  • Page Count: 32
  • Language: Polish
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