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How Regions Grow. Trends and Analysis

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.

This publication aims to measure the overall trends in economic performance and inequality in OECD regions, and to identify the main determinants of regional competitiveness.

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The book is organised into three main chapters:

i) Overall growth trends;

ii) Analysing the components of GDP growth;

iii) Assessing the impact of the main determinants of regional growth: a parametric analysis.

The first chapter measures overall growth trends in GDP, GDP per capita and GDP per worker among all OECD regions, within OECD countries, and among predominantly urban, intermediate and predominantly rural regions.

The second chapter applies an accounting framework to break GDP growth down into six factors, allowing us to identify the components of the success of certain regions and to perceive the existence of untapped resources in others.

The third chapter uses a series of econometric models to measure both the trends (convergence or divergence) in economic growth and the determinants of such performance.

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