Regional Economic Growth Disparities in Ukraine: Input-Output Analysis Approach

Andrii Verstiak, Vasyl Hryhorkiv, Oksana Verstiak, Mariia Hryhorkiv

Abstract


Regional inequalities in economic growth had been observed within many countries and regions. This research emphasizes convergence/divergence technique for Ukrainian regions. As concepts of β- and σ-convergence obtained from cross-country growth models has been subjected to a number of criticisms and they do not embrace applied significance in studying regional inequalities in Ukraine, we have built improved technique of investigating disparities across Ukrainian regions. The method is based on the analysis of regional input-output tables and its aggregation. Adopted technique provides weighted aggregation (by prices) of regional input-output tables that allows analyzing the structure of total for each region across sectors (or kinds of economic activity). We showed that implementation of aggregated regional input-output tables in analysis of regional convergence and the usage of equilibrium (weighted) prices have many advantages. The main finding is that among regions of Ukraine there are reduction of disparities in structures of different kinds of economic activities.


Keywords


regional disparities, regions of Ukraine, convergence, input-output

JEL Codes


B22; C67; C68; P52.

Full Text:

PDF

References


Abramowitz, M., 1986. Catching up, forging ahead and falling behind. The Journal of Economic History, 46(02), 385-406. doi: http://dx.doi.org/10.1017/S0022050700046209

Ara, K., 1959. The Aggregation Problem in Input-Output Analysis. Econometrica, 27(2), 257-262. doi: http://dx.doi.org/10.2307/1909446

Barro, R., 1991. Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2), 407-443. doi: http://dx.doi.org/10.2307/2937943

Barro, R., and Sala-i-Martin, X., 1992. Convergence. Journal of Political Economy, 100(2), 223-251. doi: http://dx.doi.org/10.1086/261816

Baumol, W., 1986. Productivity growth, convergence, and welfare: What the long-run data show. The American Economic Review, 76, 1072-1085.

Benovs’ka, L., 2013. Assessment of regional convergence in Ukraine. Regional economics. Working papers of Lutsk National University, 10(39), 5-11.

Cabrer, B., Contreras, D., and Miravete, E. J., 1991. Aggregation in input-output tables: How to select the best cluster linkage. Economic Systems Research, 3(2), 99-110. doi: http://dx.doi.org/10.1080/09535319100000011

Cass, D., 1965. Optimum Growth in an Aggregative Model of Capital Accumulation. The Review of Economic Studies, 32(3), 233-240. doi: http://dx.doi.org/10.2307/2295827

Durlauf, S., Johnson, P., and Temple, J., 2005. Growth econometrics. Handbook of Economic Growth. Amsterdam: North-Holland.

Grygorkiv, V., Verstiak, A., and Grygorkiv, M., 2014. Cross-country comparative analysis for the national economies based on aggregated input-output models. Intellectual Ecomomics: International scientific research journal of Mykolas Romeris University, 8(19), 178-186.

Hatanaka, M., 1952. Note on Consolidation within a Leontief System. Econometrica, 20(2), 301-303. doi: http://dx.doi.org/10.2307/1907853

Hryha, V., 2013. Economic dynamics of regional development in Ukraine.

Working papers of Uzhorod National University, 4(41), 134-139.

Kossov, V., 1972. The Theory of Aggregation in Input–Output Models. In A. P. Carter and A. Brody (Eds.), Contributions to Input-Output Analysis: North-Holland Publishing.

Leontief, W. W., 1986. Input-Output Economics (2nd ed. ed.). New York: Oxford University Press.

Malinvaud, E., 1954. Aggregation Problems in Input–Output Models. In T. Barna (Ed.), The Structural Interdependence of the Economy: John Wiley and Sons.

Mankiw, N., Romer, D., and Weil, D., 1992. A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407-437. doi: http://dx.doi.org/10.2307/2118477

Morimoto, Y., 1971. A Note on Weighted Aggregation in Input-Output Analysis. International Economic Review, 12(1), 138-143. doi: http://dx.doi.org/10.2307/2525502

Naumenko, Z., 2013. Convergence and divergence in regional economics. Economic Innovations, 52, 255-261.

Onyshchenko, A., 2011. Modeling of environmental and economic interaction in the enforcement of the Kyoto Protocol. Poltava: Poltava literator.

Quah, D., 1993. Empirical cross-section dynamics in economic growth. European Economic Review, 37(2-3), 426-434. doi: http://dx.doi.org/10.1016/0014-2921(93)90031-5

Ramsey, F. P., 1928. A Mathematical Theory of Saving. Economic Journal (London), 38(152), 543-559. doi: http://dx.doi.org/10.2307/2224098

Solow, R. M., 1956. A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65-94. doi: http://dx.doi.org/10.2307/1884513

State statistic services of Ukraine, 2014. Gross regional product 2014. Statistical summary. from http://ukrstat.gov.ua/druk/publicat/kat_u/2016/zb/04/Zb_VRP_2014.pdf.zip

Stevens, B. H., Treyz, G. I., Ehrlich, D. J., and Bower, J. R., 1983. A new technique for the construction of non-survey regional input-output models. International Regional Science Review, 8(3), 271-286. doi: http://dx.doi.org/10.1177/016001768300800306

Storonyans'ka, I. Z., 2014. Financial mechanisms of convergent model of regional development. Lviv: Institute of Regional Research.

Verkhovna Rada of Ukraine, 2015. About Principles of State Regional Policy. from http://zakon0.rada.gov.ua/laws/show/156-19




DOI: http://dx.doi.org/10.1515/saeb-2017-0028

Refbacks

  • There are currently no refbacks.
Bursa Escort bayan - Bursa Escort - Altıparmak Escort