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Growth and convergence in Finland : effects of regional features

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  • Aki Kangasharju

    (University of Jyväskylä, School of Business and Economics)

Abstract

This paper analyses convergence across the 88 subregions in Finland from 1934 to 1993. The results indicate a rather strong a convergence and intra-distribution dynamics of income levels. This indicates that, although the dispersion in subregional income levels has diminished, some ofthe poorer subregions have risen into a higher income category, whereas some of the middle income subregions have fallen into a lower category. Since this development has not been deterministic, the paper also tests for the existence of distinct regional features that determine growth and convergence. Major finding is that though some regional features tend to determine growth, only a few of them actually pass the test of robustness.

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Bibliographic Info

Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 11 (1998)
Issue (Month): 1 (Spring)
Pages: 51-61

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Handle: RePEc:fep:journl:v:11:y:1998:i:1:p:51-61

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Web page: http://www.taloustieteellinenyhdistys.fi
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  1. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  2. Barro, Robert J. & Lee, Jong-Wha, 1994. "Sources of economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 1-46, June.
  3. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
  4. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  5. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  6. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
  7. Danny Quah, 1992. "Empirical Cross-Section Dynamics in Economic Growth," FMG Discussion Papers dp154, Financial Markets Group.
  8. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
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Cited by:
  1. Aki Kangasharju, 1999. "Relative Economic Performance in Finland: Regional Convergence, 1934-1993," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 207-217.
  2. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Manuel Pérez Montiel & Gislaine Cristina de Souza Rech & Judite Sanson de Bem, 2011. "Economic convergence: a regional and subregional view," ERSA conference papers ersa11p712, European Regional Science Association.
  4. Pekkala, Sari, 1999. "Migration and individual earnings in Finland: a regional perspective," ERSA conference papers ersa99pa094, European Regional Science Association.
  5. Gustavsson, Patrik & Persson, Joakim, 2003. "Geography, Cost-Of-Living, And Determinants To Economic Growth: A Study Of The Swedish Regions, 1911-1993," EIJS Working Paper Series 186, The European Institute of Japanese Studies.
  6. Sari Pekkala, 1999. "Regional convergence across the Finnish provinces and subregions, 1960-94," Finnish Economic Papers, Finnish Economic Association, vol. 12(1), pages 28-40, Spring.

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