Chapter

Regional Output Differences in International Perspective

Ravi Kanbur and Anthony J. Venables

in Spatial Inequality and Development

Published in print February 2005 | ISBN: 9780199278633
Published online April 2005 | e-ISBN: 9780191602191 | DOI: http://dx.doi.org/10.1093/0199278636.003.0002

Series: WIDER Studies in Development Economics

 Regional Output Differences in International Perspective

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Accurate regional estimates of output are desired as an indicator of level of development and as a variable used to explain internal migration, demand patterns, fertility and other aspects of behaviour. Explores one often-neglected aspect of regional income differences, namely, that due to price differences or regional purchasing power parities. When nominal regional income measures are adjusted for these price level differences they are termed real regional incomes. The preferred method of estimating regional purchasing power parities by detailed price comparisons is discussed for Brazil, the United States and the European Union. The empirical thrust of the chapter is an investigation of different methods for estimating regional real incomes based on PPP data for 167 countries and nominal regional incomes and other data for about 870 administrative areas at the sub-national level. Even in their present form the authors believe the real income estimates provided for the geographical units present opportunities for understanding the world economic structure.

Keywords: purchasing power parities; regional price levels; spatial models

Chapter.  9452 words.  Illustrated.

Subjects: Economic Development and Growth

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