 |
 |
7/94 |  |
Regional GDP
GDP per capita varies significantly among OECD countries, but international disparities in GDP per capita are often smaller than differences among regions within countries. In 2003, GDP per capita in the richest region was twice as large as the poorest one in 80% of OECD countries.
Definition
Regional GDP is measured according to the definitions of the 1993 System of National Accounts. GDP per capita is calculated by dividing the GDP of a country or region by the population (number of inhabitants) living there.
The Gini index offers a more precise picture of regional disparities. It looks not only at the regions with the highest and the lowest GDP per capita but also at the differences among all regions. The index ranges between 0 and 1: the higher its value, the larger the regional disparities; a Gini coefficient of 1 would mean that one region has all the GDP. Regional disparities tend to be underestimated when the size of regions is large. This may be the case for Australia, Canada, Mexico and the United States, where GDP figures are only available for Territorial Level 2 regions (see Regional population).
Comparability
As for the other regional statistics, the comparability of regional GDP per capita is affected by differences in the meaning of the word "region” (see Regional population). In addition, different regional type – urban or rural – can affect the comparability of regional GDP per capita. For instance, in the United Kingdom, one might question the relevance of comparing the highly urbanized area of London to the rural region of the Shetland Islands, despite the fact that both regions belong to the same territorial level. To take account of these differences, the OECD has established a regional typology according to which regions have been classified as predominantly urban, predominantly rural and intermediate. This typology, based on the percentage of regional population living in rural or urban communities, enables meaningful comparisons between regions belonging to the same type.
The OECD regional typology is based on two criteria. The first identifies rural communities according to their population density. A community is defined as rural if its population density is below 150 inhabitants per square kilometers (500 inhabitants for Japan because its national population density exceeds 300 inhabitants per square kilometer). The second classifies regions according to the percentage of population living in rural communities. Thus a region is classified as:
- Predominantly rural, if more than 50% of its population lives in rural communities.
- Predominantly urban, if less than 15% of the population lives in rural communities.
- Intermediate, if the percentage of population living in rural communities is between 15 and 50%.
|
Overview Differences in GDP per capita among regions of the same country are often substantial. In Turkey, for instance, GDP per capita in the region of Kocaeli is almost 11 times higher than in Agri. In the United Kingdom, GDP per capita in Inner London West is more than nine times higher than in the Isle of Anglesey. Part of the observed differences in regional GDP per capita may be due to commuting. By working in one area and living in another, commuters tend to increase GDP per capita in the region where they are employed and decrease GDP per capita in the region where they reside. In several urban regions (e.g. Inner London – West, District of Columbia, Paris), GDP per capita appears significantly overstated owing to commuting. More than half (52%) of the population in OECD countries reside in regions with a level of GDP per capita below the national average. In the Slovak Republic, the Czech Republic, Mexico, Belgium, Poland and Denmark no less than 60% of the population lives in regions with low GDP per capita. |
Source
- OECD (2007), OECD Regions at a Glance, OECD, Paris.
Further information
Analytical publications
- OECD (2001), OECD Territorial Outlook, 2001 Edition, OECD, Paris.
- OECD (2003), Geographic Concentration and Territorial Disparity in OECD Countries, OECD, Paris.
- OECD (2005), Local Governance and the Drivers of Growth, OECD, Paris.
- OECD (2006), OECD Territorial Reviews – Competitive Cities in the Global Economy, OECD, Paris.
- Spiezia, V. (2003), "Measuring Regional Economies”, OECD Statistics Brief, No. 6, October, OECD, Paris, www.oecd.org/std/statisticsbrief.
Websites
- OECD Regional Database, www.oecd.org/gov/territorialindicators.
Share of total population living in regions with a GDP per capita below the national average
Variation of regional GDP per capita
Gini Index of Regional disparities in GDP
|
7/94 | |