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GDP and TFP in Poviats of the Łódzkie Voivodeship. Estimation and Analysis of Differentiation

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  • Dańska-Borsiak Barbara

    (University of Lodz, Lodz, Poland)

Abstract

The main objective of the research was to estimate the level of GDP and total factor productivity (TFP) in the counties (‘poviats’) of the Łódzkie voivodeship in the period 2002-2019. The gross product in poviats was determined by disaggregating the GDP of the Łódzkie voivodeship in proportion to the revenues of poviat budgets from personal income tax PIT and to the shares of poviats in the voivodeship wage fund. TFP was determined on the basis of a labour productivity model derived from the Cobb-Douglas production function with the assumption of constant returns to scale. A spatial panel data model estimated by the maximum likelihood method was applied. The poviat of Łódź was identified as the upper outlier in terms of the level of gross product. The dynamics of poviat values of GDP was similar to the national one, but poviats with a much faster rate of growth were identified. The highest level of TFP was observed in the poviat of Łódź. Very high productivity was also characteristic for the two other cities with poviat status, especially Skierniewice. In the Łódzkie voivodeship there was a progressive polarisation in terms of TFP with two leading poviats. No spillover processes were found. The capital city of the voivodeship, being itself the upper outlier, therefore did not play the role of a growth centre. It was also found that a clearly defined profile of economic activity in the poviat is conducive to faster TFP growth.

Suggested Citation

  • Dańska-Borsiak Barbara, 2022. "GDP and TFP in Poviats of the Łódzkie Voivodeship. Estimation and Analysis of Differentiation," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 26(1), pages 14-30, March.
    • Handle: RePEc:vrs:eaiada:v:26:y:2022:i:1:p:14-30:n:2
    DOI: 10.15611/eada.2022.1.02
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    References listed on IDEAS

    as
    1. Magdalena Ulrichs & Emilia Gosińska, 2020. "Sektorowe funkcje produkcji - wnioski z modeli panelowych dla Polski," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 71-94.
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    3. Charles R. Hulten & Anders Isaksson, 2007. "Why Development Levels Differ: The Sources of Differential Economic Growth in a Panel of High and Low Income Countries," NBER Working Papers 13469, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    total factor productivity (TFP); GDP; poviat; spatial panel data model;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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