Differences in Regional Productivity and Imbalance in Regional Growth

This paper focuses on the relationships between regional productivity and regional economic growth. Historical data show the difference in regional productivity in both geographical and sectoral dimensions. Using a modelling approach, the paper tests the regional spillover effects among three types of municipalities in two selected sectors. The results show that, firstly, there are different impacts on different types of regions; secondly, the spillover of impacts differ with respect to regional spillovers and sectoral spillovers; thirdly, the economic structure and the linkage between the regions also play a role in regional spillovers. Imbalanced growth between the regions is revealed.