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The opening of the North-South divide: Cumulative causation, household income disparity and the regional bonus in Taiwan 1976-2005

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Author

Summary, in English

During the last decades regional income divergence seems to have reappeared in both developed and developing countries. In Taiwan – a renowned case of growth with equity – regional per capita income was converging until the early 1990s after which it began to diverge. With the help of modeled annual household survey data from 1976 to 2005 we indicate the magnitude of a regional bonus and discuss reasons behind the re-opening of the North-South income divide in Taiwan. Our analysis suggests that this process is a consequence of cumulative causation connected to the advent of the rise of ICT industry in conjunction with changes in Taiwan’s political economy which provided relatively more advantageous economic opportunities for the industrial structure of the leading region.

Publishing year

2012

Language

English

Pages

170-179

Publication/Series

Structural Change and Economic Dynamics

Volume

23

Issue

2

Document type

Journal article

Publisher

Elsevier

Topic

  • Economic History

Keywords

  • regional income dynamics
  • cumulative causation
  • spatial inequality
  • industrialization
  • Taiwan

Status

Published

ISBN/ISSN/Other

  • ISSN: 0954-349X