Presentation by Rudiger Ahrend, Head of Economic Analysis, Statistics and Multi-level Governance at the OECD Centre for Entrepreneurship, SMEs, Regions and Cities at the second meeting of the Spatial productivity Lab of the OECD Trento Centre held on 4 December 2018.
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Lorain Road Business District Revitalization Plan Final Presentation
OECD Regions and Cities at a Glance 2018 - Overview
1. Trento Spatial Productivity Lab
OECD Regions and Cities at a
Glance 2018
Head of Economic Analysis, Statistics and Multi-level Governance
Centre for Entrepreneurship, SMEs, Regions and Cities
Rudiger Ahrend
Trento, 4 December 2018
2. Regions and Cities at a Glance 2018
New features of this edition
Recent trends on entrepreneurship in
regions, with new indicators on creation
and destruction of firms and associated
jobs.
An assessment of migrant integration
in OECD regions.
Indicators of socio-economic
conditions, inequalities and poverty in
metropolitan areas and their
neighbourhoods.
3. Structure of the presentation
1. Regions as drivers of national productivity
2. Selected determinants of productivity
3. (Well-being in regions)
4. (Cities and national economies)
4. Structure of the presentation
1. Regions as drivers of national productivity
6. 0 5 10 15 20 25 30 35 40 45 50
USA
AUS
DEU
ITA
NZL
MEX
BEL
ESP
NLD
POL
GBR
CZE
AUT
NOR
SVK
FRA
SWE
JPN
PRT
FIN
CAN
DNK
CHL
HUN
GRC
KOR
2016 2000
%
% of GDP in the capital region (TL2)
over total country GDP, 2016
Capital regions have been gaining
economic importance within countries
The median share of
GDP in capital regions
increased by 12% (2.8
percentage points) since
2000.
Largest increase in
Norway (+21%), lowest
in Mexico (-8%).
Enterprise creation
and employment
creation rates by new
firms are 60% higher in
capital regions.
9. Convergence in
per capita GDP
and labour
productivity
in the OECD/EU
between
2000 and 2014
Frontier regions
• most productive
regions accounting
for 10% of total
employment
Catching up/Diverging
• Productivity growth
is 5% higher/lower
than in the frontier
over a 13 year
period
9
Source:OECD(2018)ProductivityandJobsinaGlobalisedWorld:(How)CanAllRegionsBenefit?
Challenge? Productivity
gaps have narrowed in
the EU and the OECD
14. Where do productivity gains occur?
Proximity to cities and exposure to international competition matter
In 2/3 of countries, the productivity gap between top and bottom 10% has narrowed
since 2010.
Rural regions close to cities have narrowed the gap with urban regions by 3
percentage points since 2010.
Regions with a higher specialization in the tradable sector – implying higher
exposure to international competition showed a higher growth in productivity
Rural close to cities
Rural remote
Rural total
75
76
77
78
79
80
81
82
83
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Productivity level of Predominantly Urban regions=100
%
Productivity growth in rural regions, 2000-15 (TL3)
15. Patterns of productivity growth by type of
region
Distribution of type of regions into frontier, catching up, diverging and keeping
pace, 2000-15, TL3.
16. Annual average GVA growth, 2000-13 Percentage of total GVA (right axis), 2013
-20
-10
0
10
20
30
40
50
60
70
80
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
4
Tradable
services
Industry
Agriculture
Non-tradable
services
%%
-20
-10
0
10
20
30
40
50
60
70
80
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
4
Tradable
services
Industry
Agriculture
Non-tradable
services
%%
-20
-10
0
10
20
30
40
50
60
70
80
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
4
Tradable
services
Industry
Agriculture
Non-tradable
services
%%
Goods
?
16
The nature of tradable sectors is changing
… but not in all parts of Europe
EU low-growth regions EU low-income regions Other European regions
Tradable
services
Low-income: <50% of EU-average per capita GDP; low-growth: <90% per capita GDP and below average growth
Source : OECD (2018) Productivity and Jobs in a Globalised World: (How) Can All Regions Benefit?
17. Annual productivity growth in tradable and
non-tradable sectors, 2010-15 (TL2)
Productivity growth in regions that are more or less concentrated on tradable
sectors than the national average
18. Structure of the presentation
1. Regions as drivers of national productivity
2. Selected determinants of productivity
20. Regional variation in the % of the labour force
with at least secondary education, 2017
21. Regional disparities in the presence of
native-born with tertiary education
East
Åland
Wallonia
HedmarkandO
Azores
Sicily
Border,
Midland,W.
Saskatchewan
Styria
N.GreatPlain
N.Middle
N.Jutland
Zeeland
East
Saarland
CanaryIslands
Tasmania
Picardy
N.E.England
Northwest
WestVirginia
Oaxaca
West
Helsinki-U.
BrusselsReg.
OsloRegion
Lisbon
Metropolitan
Lazio
SouthandEast
Ontario
Vienna
Central
Stockholm
CopenhagenR.
Utrecht
Zurich
Berlin
BasqueC.
Canberra
RegionACT
Île-de-France
GreaterLondon
Prague
D.ofColumbia
MexicoCity
-20
0
20
40
60
80
100%
Large regions (TL2), 2014-15 (two-year average)
22. Regional variation in the % of households
with a broadband connection, 2017
Middle-West
Ingushetia
Gangwon
OtherRegions
Wallonia
Zealand
Overijssel
East
Burgenland
South
Border,Midland,W.
Trøndelag
Ticino
West
Northeast
Quebec
Northwest
Galicia
Latgale
N.Middle
N.E.England
Tasmania
Utena
Brandenburg
North
Calabria
Swietokrzyskie
Alentejo
Northland
Corsica
Mississippi
Hokkaido
Jerusalem
Maule
E.AnatoliaE.
Chiapas
GreaterNorth-East
SaintPetersburg
SeoulRegion
ReykjavikRegion
FlemishRegion
CopenhagenRegion
Flevoland
West
Styria
Helsinki-Uusimaa
SouthandEast
OsloRegion
Zurich
Bratislava
North
Alberta
Prague
Madrid
Riga
CentralNorrland
GreaterLondon
CanberraRegionACT
Kaunas
Hamburg
Central
Lombardy
Podkarpacia
LisbonMetropolitan
Auckland
Île-de-France
NewHampshire
S.-Kanto
Central
Antofagasta
Istanbul
BajaCaliforniaS.
0
20
40
60
80
100
120
140
Minimum Country average Maximum
%
Large regions (TL2)
25. Population in cities continues to grow, with
strongest growth in largest metropolitan areas
• Metropolitan areas with more than 1.5 million inhabitants grew by 13% since 2000
0
10
20
30
40
50
60
70
80
90
100
Large metropolitan area
(>1.5 Million)
Metropolitan area
(500k - 1.5 Million)
Medium-sized urban area
(250k -500k)
Small urban area
(50k -250k)
%
Country (number of urban areas)
Share of people living in urban agglomerations (at least 50 thousands)
Population in functional urban areas over total national population
69%
26. Metropolitan areas represent an
important share of national economies
Metropolitan areas
(> 500 thousands
people) represent
55% of total
population, but
account for 59% of
employment and
60% of GDP.
Capitals, typically the
richest metropolitan
areas, recorded a per
capita GDP 37%
higher than national
per capita GDP
Bogotá
Santiago
Vienna
Oslo
Toyohashi
Copenhagen
Basel
Greater Perth
Amsterdam
Lisboa
Helsinki
Edmonton
Brussels
Madrid
Athens
Dublin
Riga
Ljubljana
Tallinn
Stockholm
London
Milan
Budapest
Prague
Munich
Paris
Monterrey
Nam
Santa Cruz
Warsaw
Bratislava
0 20 000 40 000 60 000 80 000 100 000 120 000
COL
CHL
AUT
NOR
JPN
DNK
CHE
AUS
NLD
PRT
FIN
CAN
BEL
ESP
GRC
IRL
LVA
SVN
EST
SWE
GBR
ITA
HUN
CZE
DEU
FRA
MEX
KOR
USA
POL
SVK
Country average Maximum
USD per head, PPP, prices of 2010
Differences in GDP per
capita between richest
Metropolitan area and
country average, 2016
27. Last 3 years, positive net inter-regional
population flows, mainly towards urban regions
Annual regional mobility, average 2014-16,
TL3 regions, net flows
- On average, 2% of total
population changed region
of residence in 2014-16
- Urban regions accounted for
80% of in-country youth
migration over the last three
years
- Among rural regions, remote
ones show higher net
outflows
28. Annual GDP growth in metropolitan
areas, 2000-16
-1
0
1
2
3
4
5% Ordered by the highest to lowest difference between the metropolitan areas and the
rest of the country
29. Firm creation rates by country and type
of region, 2015
3
5
7
9
11
13
15
17
19
21
23
AUT CZE DNK ESP EST FIN FRA GBR HUN ITA LVA NOR PRT SVK OECD14
Predominantlyrural Intermediate Predominantlyurban
%
30. Structure of the presentation
1. Regions as drivers of national productivity
2. Selected determinants of productivity
3. Well-being in regions
31. Finding a job remains considerably more
difficult in certain regions, especially for youths
• Unemployment rates are on average
close to pre-crisis level, but
differences across regions remain
high, up to 20pp
• Differences are particularly stark for
the youths, as more than 50% of
young people is unemployed in
certain regions in Italy and Greece.
• Regional unemployment gap (2012-
16) increased mainly due to faster job
growth in regions with low
unemployment
32. Gender gaps in employment rate remain
high (12.3 pp), but improved since 2000
Chap.3
Maximum regional gender gap in employment rate (male - female), 2000-16
0
5
10
15
20
25
30
35
40
45
50
Maximum region in 2016 Maximum region in 2000
Percentage points difference
-2 -3
33. Gender gaps in employment rate and share
in tertiary education
Difference between male and female, TL2
Highest regional gender gap in
employment rate
Central
Prague
Limburg
Salzburg
Central
North East
Central
South
Algarve
Midi-Pyrénées
Ceuta
South-East
S. Aegean
E. Anatolia E.
Stockholm
Silesia
Ticino
Saxony-Anhalt
Friesland
Vienna
Scotland
East
N. Great Plain
Zealand
Centro
Corsica
Campania
Wallonia
North
W. Macedonia
Ankara
C. Norrland
-15 -5 5 15 25
CHE
DEU
LUX
CZE
NLD
AUT
GBR
SVK
ROU
HUN
DNK
PRT
FRA
ITA
ESP
BEL
NOR
GRC
FIN
IRL
TUR
SWE
POL
SVN
LTU
EST
LVA
Minimum Country average Maximum
%-points
Swietokrzyskie
South and East Border, Midland
East and North
Greater London
Bolzano-Bozen
Brussels Region
Helsinki-Uusimaa
Castile and León
Bucharest - Ilfov
Central Moravia
Baden-Württemberg
Åland
Trøndelag
C. Norrland
Iceland
South
East
PACA
North
Saarland
Alberta
Brussels Region
Greater London
Victoria
Ticino
South and East
Zeeland
East
Opole region
Gyeongnam
North
S.-Kanto
Utah
West
Maule
Sardinia
Chiapas
0 10 20 30 40 50
FIN
NOR
SWE
ISL
DNK
SVN
FRA
PRT
DEU
CAN
AUT
BEL
GBR
AUS
CHE
IRL
NLD
SVK
NZL
HUN
CZE
POL
KOR
ESP
ISR
JPN
USA
GRC
CHL
ITA
TUR
MEX
Percentage points
Maximum in 2017 (region name) Maximum in 2000
Vorarlberg
C. Anatolia - W.S.
Tasman-Nelson-Marl.
Central Bohemia
W. Transdanubia
Castile-La Mancha
Gender gap in tertiary education, 2017
34. Households spend on average 20% of income
on housing, with large variation across places
Housing expenditure
exceeds 35% of household
disposable income in the
capital regions of Oslo
(Norway) and Jerusalem
(Israel)
Families living in Greater
London, and Vienna spend
50% more for housing than
those in Northern Ireland
and Burgenland,
respectively.
35. Structure of the presentation
1. Regions as drivers of national productivity
2. Selected determinants of productivity
3. Well-being in regions
4. Cities and national economies
36. Metropolitan areas can also be highly unequal
and show segregation of different income groups
The Gini index of
inequalities is 3.3%
higher in
metropolitan areas
than elsewhere.
Income inequalities
can translate into
rich and poor people
living separated in
different
neighbourhoods (i.e.
segregation).
In 9 out of 11
countries
considered, higher
income groups show
the highest
segregation.
Concepción
Lancaster(PA)
Québec
Porto
Gent
Catania
Nantes
Göteborg
Linz
Santiago
Miami
Calgary
Lisbon
Brussels
Bari
Paris
Malmö
Vienna
Copenhagen
Oslo
0.1
0.2
0.3
0.4
0.5
0.6
CHL (3) USA (93) CAN (34) PRT (2) BEL (4) ITA (13) FRA (15) SWE (3) AUT (3) DNK (1) NOR (1)
Minimum Metropolitan Area Country average Maximum Metropolitan Area
Gini index
Inequality in disposable income within metropolitan areas
(2016 or latest available year)
37. Following improvements in the last decade, air
pollution in cities has started to increase again
Bergen
Turku
Galway
Toowoomba
Tallinn
Aalborg
Umeå
PontaDelgada
St.John's
Namur
Leeuwarden
Quimper
Aberdeen
Ljubljana
Bend
Flensburg
Naha
Innsbruck
Kavala
Szeged
St.Gallen
BenitoJuárez
BanskáBystrica
PuntaArenas
Lugo
KarlovyVary
Slupsk
Cosenza
Jeju
Luxembourg
Stavanger
Kuopio
Dublin
GreaterDarwin
Tartu
Odense
Malmö
PóvoadeVarzim
Windsor
Oostende
Middelburg
Hénin-Carvin
Margate
Maribor
Merced
Görlitz
Kitakyushu
Vienna
Irakleio
Budapest
Lugano
Mexicocity
Trencín
Santiago
Melilla
Karviná
Rybnik
Padova
Pyeongtaek
- 5
0
5
10
15
20
25
30
35
Minimum city Country average Maximumcity
μg/m3
Urban average exposure to air pollution, 2015
39. Regions with strong pre-crisis increases
in non-tradable sectors lost more jobs
39
Calculations based on 208 OECD TL2 regions. Those regions with the largest
shifts towards non-tradable sectors suffered higher employment losses, on
average, following the 2007-08 crisis.
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
Less than 2.5
percentage points
increase
2.5 to 5 percentage
points
5 to 7.5 percentage
points
More than 7.5
percentage points
increase
Change in the share of non-tradable employment, 2000-07
Employment growth (%), 2008-14
Source:OECD(2018)ProductivityandJobsinaGlobalisedWorld:
(How)CanAllRegionsBenefit?
43. Elderly dependency ratios in 2017
10 15 20 25 30 35 40 45 50 55
TUN
ROU
BGR
ISR
LUX
MEX
TUR
CHL
SVK
ISL
IRL
POL
USA
OECD
BEL
NZL
KOR
HUN
SVN
AUT
CZE
NOR
CAN
AUS
LTU
LVA
CHE
EST
DEU
DNK
ITA
FIN
FRA
GBR
SWE
GRC
PRT
NLD
ESP
JPN
Rural Intermediate Urban
%
Dependency ratios in 2017
45. Percentage of jobs at significant and high
risk of automation by country (%), 2013
46. Some countries have wide disparities in terms
of high risk of automation across regions
47. Regions highly affected by automation display
higher unemployment and lower productivity
Labour productivity and unemployment rate in TL2 regions, 2015
49. The Regional dimension of job creation: Italy
A. Creating jobs,
predominantly in
less risky
occupations
B. Creating jobs,
predominantly in
riskier occupations
C. Losing jobs,
predominantly
in
riskier
occupations
D. Losing jobs,
predominantly in
less risky
occupations
Lombardy Campania Piedmont Liguria
Molise Autonomous Province
of Bolzano
Valle d’Aosta Abruzzo
Basilicata Tuscany Sicily Apulia
Autonomous Province
of Trento
Sardinia Calabria
Emilia-Romagna Veneto Friuli-Venezia
Giulia
Lazio Marche Umbria
50. Job creation by risk
of automation,
selected regions,
2011-16, Italy
Editor's Notes
Release of the publication: 18th of October 2018 during the Plenary Session of the Committee of the Regions in Brussels
Published every two years with a special focus. The previous editions had a special chapters on Metropolitan areas and their contribution to national competiveness, in 2016 it was on well-being, for 2018 the focus is made on business demography and migration.
This report aims at providing a comprehensive picture of measures that reflects the progress of people’s life and the level of progress in regions and metropolitan areas.
Regional economies are analyzed along these dimensions, with their concentration of resources, their contribution to national growth, the persistence of disparities and the links between the characteristics of regions and their performance.
The special chapters are about business demography and migration and built on the experience drawn from the reports on “Geography of Firm Dynamics (2017)” and “The integration of migrants in OECD regions” which have been presented thoroughly during the sessions of the Working Party
This report aims at providing a comprehensive picture of measures that reflects the progress of people’s life and the level of progress in regions and metropolitan areas.
Regional economies are analyzed along these dimensions, with their concentration of resources, their contribution to national growth, the persistence of disparities and the links between the characteristics of regions and their performance.
The special chapters are about business demography and migration and built on the experience drawn from the reports on “Geography of Firm Dynamics (2017)” and “The integration of migrants in OECD regions” which have been presented thoroughly during the sessions of the Working Party
Total OECD-wide regional disparities relatively stable but changing composition
Recently, disparities across countries have become relatively more important again
Similar trend in last years if we use the Theil decomposition
Within countries, we see an increased concentration of economic activity in capitals.
On average, they account for more than 26% of national GDP
Importance is rising (relevance of service sector?)
Since 2000, economic gaps between regions have been stable or decreasing in half of the OECD countries, but have been further increasing in the other half. For example, Chile, Mexico and New Zealand significantly narrowed regional economic disparities. In contrast, disparities for countries that were hit the hardest by the global financial crisis (e.g. countries in Southern Europe or Ireland) increased, albeit with some signs of a reversal in recent years.
Within countries, we see an increased concentration of economic activity in capitals.
On average, they account for more than 26% of national GDP
Importance is rising (relevance of service sector?)
- Enterprise rates: per capita
Among economically lagging regions that successfully caught up with more productive regions, a number of characteristics stand out: proximity to cities and exposure to international trade.
Rural regions close to a city have narrowed the gap with urban regions by 3 pp since 2010 and now their labour productivity levels are equivalent to 82% of urban regions’ productivity.
On average, productivity gains in the tradable sector were generated by firms becoming more productive while gains in the non-tradable sector occurred through a reallocation of employment from less to more productive activities.
Remote regions are overrepresented in the group of diverging, lagging regions.
Remote lagging regions only make up 14% of ‘catching up’ regions (i.e. those regions that successfully managed to narrow the productivity gap versus the most productive regions in their country)
This report aims at providing a comprehensive picture of measures that reflects the progress of people’s life and the level of progress in regions and metropolitan areas.
Regional economies are analyzed along these dimensions, with their concentration of resources, their contribution to national growth, the persistence of disparities and the links between the characteristics of regions and their performance.
The special chapters are about business demography and migration and built on the experience drawn from the reports on “Geography of Firm Dynamics (2017)” and “The integration of migrants in OECD regions” which have been presented thoroughly during the sessions of the Working Party
The report documents that the importance of cities is rising across the OECD:
Growing population
Increasing economic significance
More innovative and higher firm creation rates
The documented regional differences in economic factors and living standard are likely to be affected by demographic megatrends such as migration and ageing:
- They provide opportunities as well as challenges
- R@AG documents these trends, with a special focus on migration:
In the 31 observed OECD countries, 21.5 million people changed their region of residence each year, during the period 2014-16. This movement corresponded to 2% of the total population in the OECD area, more than four times the value of the international migration rate to OECD countries.
7 people per every 10 000 inhabitants of a urban area are migrants from a rural region. Net migration rate is -2 and -11 for intermediate and rural regions, respectively. Distance to labour markets and services seems to explain inter-regional migration within OECD countries: remote rural regions which are far in driving distance from urban agglomerations show higher net negative flows than predominantly rural regions.
The mobility of youth, which represents 6% of the total internal mobility is a migration from rural to urban regions where higher education facilities and more diverse job opportunities can be found.
This report aims at providing a comprehensive picture of measures that reflects the progress of people’s life and the level of progress in regions and metropolitan areas.
Regional economies are analyzed along these dimensions, with their concentration of resources, their contribution to national growth, the persistence of disparities and the links between the characteristics of regions and their performance.
The special chapters are about business demography and migration and built on the experience drawn from the reports on “Geography of Firm Dynamics (2017)” and “The integration of migrants in OECD regions” which have been presented thoroughly during the sessions of the Working Party
Regional differences in these economic factors are highly relevant because they have a direct impact on people’s living standards.
The report examines various well-being dimensions in regions: employment, education, housing etc.
In several well-being dimensions, in particular education and health, regional disparities have fallen but they are often still significant.
**
At least 10pp of differences between regions in unemployment rate are found in Turkey, Italy, Spain, Greece and Belgium.
In 30% of regions, less than a half of working age women were employed in 2017
- Female employment rates have increased in OECD countries over the past decades, the overall rate exceeding 61% in 2016.
Important differences in the access to labour markets for women still persist in OECD area with a difference of 12.3 percentage points in employment rate compared to male in 2016, a gap slightly lower than in 2000 (12.8)
The highest regional gender gap was above 20 percentage points in fifteen countries in 2000, and only in six countries in 2016
However, in 28% of OECD regions, less than half of women were employed in 2016. Regional discrepancies in female employment were the largest in Mexico, Turkey, Chile, Italy, Greece and Spain
In Mexico, the highest region in 2000 was Campeche -51pp decreased to -39pp of difference, replaced by Chiapas as the highest gap (49pp in 2016)
The biggest decrease in gender gap occurred :
in the Azores in Portugal (-69% of the gap) – the reduction was of the same level in the Metropolitan area of Lisbon (-58%)
In Ireland (-53% in Border, Midland and Western
Housing remains a pressing issue for many residents in OECD regions as high and rising costs put a strain on household finances.
This report aims at providing a comprehensive picture of measures that reflects the progress of people’s life and the level of progress in regions and metropolitan areas.
Regional economies are analyzed along these dimensions, with their concentration of resources, their contribution to national growth, the persistence of disparities and the links between the characteristics of regions and their performance.
The special chapters are about business demography and migration and built on the experience drawn from the reports on “Geography of Firm Dynamics (2017)” and “The integration of migrants in OECD regions” which have been presented thoroughly during the sessions of the Working Party
While cities are richer and there residents enjoy higher income levels, they are also more unequal and often segregated.
In 14 countries out of the 24 countries available, the capital-city region gathers the highest share of foreign-born.
Two thirds of the foreign-born population live in mostly metropolitan regions, 6 percentage points more than the average of the native-born population (58%)