OECD Regions at a Glance

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In most member nations of the Organisation for Economic Co-operation and Development (OECD) there are wide differences in economic growth rates across the regions within each country.

In 2003, gross domestic product (GDP) per capita in urban regions of the OECD was 51% higher than the average for a given nation, according to a new OECD report.

However, in both intermediate and rural regions, GDP per capita was below the national average. In intermediate regions, it was 77% of the national average, and in rural regions, it was 64% of the national average.

The report OECD Regions at a Glance: 2007 reveals that higher GDP per capita in urban regions is a result of "agglomeration economies". The clustering of businesses and people in urban regions and large towns improves the efficiency of the local economy and leads to higher productivity.

In today's knowledge-based economies, a region's growth prospects depend, in part, on its ability to generate and use innovation. This capability, in turn, depends on the skill level of the regional labour force.

There are considerable regional variations in educational levels. In France, Australia, the United Kingdom and Canada, differences in postsecondary educational attainment varied by over 30% between the best and worst performing regions.

Growth in regional GDP can be regarded as the joint result of several factors. First, regional performance is significantly affected by country-specific factors, such as national economic policies and the business cycle.

Second, it depends on region-specific factors, such as demographic trends and natural resources.

Finally, regional performance depends on regional policies, that is, on the region's ability to increase productivity, change industry specialisation to seize new market opportunities, increase the efficiency of the local labour market and invest in skills and innovation.

The performance of OECD regions between 1998 and 2003 suggests that region-specific factors play a significant role in producing above-average rates of economic growth. The reverse is also true; regional factors can also significantly undermine growth. In most cases, however, national performance remains the dominant factor.

The OECD report also looked at certain quality of life indicators. One striking finding was that, in the majority of OECD countries, the male population in rural regions had the highest age-adjusted mortality rate.

Definitions, data sources and methods: survey number 3901.

The report OECD Regions at a Glance: 2007 is published today by the OECD and is available online (http://new.sourceoecd.org).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Ray Bollman (306-379-4431; RayD.Bollman@sasktel.net), Agriculture Division, Statistics Canada.