Convergence of regional growth paths towards stable steady-states in Poland in years 1998-2000

Abstract

In the paper we present two neoclassical growth models of Solow-Swan type: with regional budget deficit and without it. The main aim of the paper is to analyze the convergence of regions in Poland towards their stable steady-states and to check the speed of this convergence. We use the method of calibration of parameters in models and numerical methods for calculating capital and output per worker in stable steady-states. The computations were made for the new administrative division of Poland. On the base of empirical results we make conclusions about future distribution of wealth among regions and about potential possibilities of growth in regions. We also try to answer the question if in the future there will be convergence or divergence welfare among the regions of Poland. (original abstract)