Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.1 Regular adjustment dynamics

a. 2-region base scenario

0.97

1

1.03

0 1

lambda 1

w1

/w2

A

D

CB

E

0.3

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.1 Regular adjustment dynamics

b. Share of manufacturing workers in 1; eta = 2

0

0.5

1

0 50 100 150 200

Reallocation

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.1 Regular adjustment dynamics

c. Number of reallocations towards spreading

0

50

100

150

200

250

0 20 40 60 80 100 120 140

eta

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.2 Special adjustment dynamics(along vertical axis, ; horizontal axis, number of reallocations)

a. eta = 200; cycles

0

0.5

1

0 500 1000

b. eta = 200; cycles, detail

0

0.5

1

100 130

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.2 Special adjustment dynamics(along vertical axis, ; horizontal axis, number of reallocations)

c. eta = 332; converge to unstable equilibrium

0

0.5

1

1 5 9 13

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.2 Special adjustment dynamics(along vertical axis, ; horizontal axis, number of reallocations)

d. eta = 335; agglomerate in 1

0

0.5

1

1 5 9 13

e. eta = 340; agglomerate in 2

0

0.5

1

1 3 5 7

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.3 Histogram of per capita income, selected years

a. His togram of ln(incom e per capita)

0

5

10

15

20

25

5.7 6.6 7.5 8.4 9.3 10.2 11.1ln(income per capita)

num

ber

of c

ount

ries

1950

QatarKuw ait

Guinea Bissau

b. His togram of ln(incom e per capita)

0

5

10

15

20

25

5.7 6.6 7.5 8.4 9.3 10.2 11.1ln(income per capita)

num

ber

of c

ount

ries

1968

Qatar

Malaw iBurundi

ChadGuinea

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.3 Histogram of per capita income, selected years

c. His togram of ln(incom e per capita)

0

5

10

15

20

25

5.7 6.6 7.5 8.4 9.3 10.2 11.1ln(income per capita)

num

ber

of c

ount

ries

1986

USA

TanzaniaChad

Guinea

d. His togram of ln(incom e per capita)

0

5

10

15

20

25

5.7 6.6 7.5 8.4 9.3 10.2 11.1ln(income per capita)

num

ber

of c

ount

ries

2003

USAZaire

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.4 Regional convergence in the EU, speed of convergence estimates

Regional convergence in the EU

0

0.01

0.02

0.03

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995

midyear of estimate period

estim

ated

spe

ed o

f co

nver

genc

e

BS1991

BS1995

A1995a

A1995b

EC1997

BP1999

fit

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.5 Regional income inequality in the EU: Lorenz curves

EU regional income inequality; Lorenzcurves 1995 and 2004

0

1

0 1cumulative share of population

cum

ulat

ive

shar

e of

inco

me

19952004

diagonal

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.6 Regional income inequality in the EU: Theil index and Gini coefficient

EU regional income inequality: Theil index and Gini coefficient

0.02

0.03

0.04

0.05

0.06

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0.08

0.12

0.16

0.20

0.24

Theil within countries (left hand scale)

Theil between countries (left hand scale)

Gini coefficient (right hand scale)

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.7 Leaders and laggards in the world economy, 1-2003

10001 1500 1600 18001700 200019000

100

200

300

500

400

income per capita (% of world average)

year

Italy

IraqIran

Netherlands

UK

Australia

USA

Switzerland

IndiaChina

oAfricaW Offshoots

New Zealand

AustraliaMany Many

Italy

10001 1500 1600 18001700 200019000

100

200

300

500

400

10001 1500 1600 18001700 200019000

100

200

300

500

400

1 1500 1600 18001700 200019000

100

200

300

500

400

income per capita (% of world average)

year

Italy

IraqIran

Netherlands

UK

Australia

USA

Switzerland

IndiaChina

oAfricaW Offshoots

New Zealand

AustraliaMany Many

Italy

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.8 Distribution of manufacturing and Herfindahl index

Herfindahl index for 2 regions

0

1

0 1

share in region 1

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.9 Evolution of agglomeration, the Herfindahl index

Herfindahl index

0

0.1

0.2

0.3

0.4

0.5

0 200 400 600 800

reallocation

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.10 Several phases of the reallocation process

1

2

3

4

5

6

7

8

9

10

11

12

T=2.2 T=2.1a

b T=2

1

2

3

4

5

6

7

8

9

10

11

12

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.10 Several phases of the reallocation process

c T=1.9

1

2

3

4

5

6

7

8

9

10

11

12

d T=1.7

1

2

3

4

5

6

7

8

9

10

11

12

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.10 Several phases of the reallocation process

e T=1.5

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

T=1.2 T=1.1f

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.11 Dynamics of regional size; regions 3, 6, and 9

Evolution of share of manufacturing

0

0,1

0,2

0,3

0,4

0,5

0 200 400 600 800

reallocation

36

9

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.12 Stability in the Baldwin-Forslid economic growth model

0.2 0.4 0.6 0.80 1

1.5 1.26 1.14 1.06 1

Freenessof trade

Knowledgespillovers

Implied T

1

Agglomeration stable; spreading unstable

Agglomeration stable; spreading stable

Agglomeration unstable; spreading stable

Brakman, Garretsen, and van Marrewijk, 2008

Figure 10.13 Scatterplot of own and neighboring institutions

Rule of Law and neighbours

-2.5

2.5

-2.5 2.5

Rule of Law

Nei

ghbo

ur's

Rul

e of

Law

diagonal

linear prediction

Philippines

Hong Kong

Chile

Kuwait

Yemen

Iraq