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Regional per Capita-Income - The Importance of Region-Specific Production Factors

Author

Listed:
  • Dirk Fornahl
  • Axel Johannes Schaffer
  • Jochen Siegele

Abstract

Endowment with infrastructure, human and cultural capital is highly significant for regional economic performance. After clustering the regions, this hypothesis is tested for Austrian, German and Swiss NUTS 3 regions by applying a quantile regression analysis. First results confirm the hypothesis for all factors. However, coefficients differ significantly both between clusters as well as among the quantiles of each cluster. Furthermore, insights into the regions' efficiency in using these factors are generated: investments into region-specific factors will not push the regional economy automatically, but the under- or above-average efficiency has to be taken into account.

Suggested Citation

  • Dirk Fornahl & Axel Johannes Schaffer & Jochen Siegele, 2009. "Regional per Capita-Income - The Importance of Region-Specific Production Factors," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(II), pages 155-185, June.
    • Handle: RePEc:ses:arsjes:2009-ii-3
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    More about this item

    Keywords

    Quantile regression; regional efficiency; infrastructure; human capital; cultural capital;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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