REGIONAL PRODUCTIVITY AND FACTOR MOBILITY--TWO REGIONAL GROWTH MODELS (TAIWAN)

TZER-CHYUN YANG, University of Pennsylvania

Abstract

The potential conflict between aggregate efficiency and interregional equity is the crucial issue in regional policy. This dissertation is intended to fulfill, theoretically and empirically, the research gap in study of regional income inequality, regional productivity differentials and regional policy in the face of disparity. After investigating the implications of regional income inequality, we estimate the economic efficiency and inequality via the specification and estimation of regional production functions. Then, dynamic regional growth models are designed by combining regional productivity and factor mobility, both with and without the explicit consideration of industrial structure. Indexes are calculated to measure regional divergence and convergence. Finally, empirical studies are executed for the case of Taiwan. We find the developed region will continue to attract both capital and labor from other regions. The disparity of output per worker decreases in response to the factor mobility, and the disparity of growth rate of regional output increases with the differences in the regional productivity. Together these generate changes in the growth rate of output per worker. When industrial structure is explicitly considered, the disparity of output per worker then shift in response to the differences in regional industrial structure, sectoral productivity, and rates of return.

Subject Area

Economics

Recommended Citation

YANG, TZER-CHYUN, "REGIONAL PRODUCTIVITY AND FACTOR MOBILITY--TWO REGIONAL GROWTH MODELS (TAIWAN)" (1986). Dissertations available from ProQuest. AAI8703293.
https://repository.upenn.edu/dissertations/AAI8703293

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