How Regions Grow

Trends and Analysis

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Regional differences within OECD countries are often greater than those between countries and much inequality remains. This report explores what generates growth at the regional level. Based on in-depth econometric modelling and analyses, this report reframes the debate on regional policy and development, emphasising that opportunities for growth exist in all regions.

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Assessing the Impact of the Main Determinants of Regional Growth

A Parametric Analysis

Chapter 1 described how, between 1995 and 2005, there was a significantly greater disparity in growth (three times larger) across OECD regions than across countries. Furthermore, we showed that growth does not occur uniformly within similar types of regions (i.e. predominately urban and rural regions). Not only was there a significant number of urban regions growing faster than rural regions, but also a significant number of rural regions out-performed urban regions in terms of GDP per capita growth rates over that decade.

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