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Regional convergence across the Finnish provinces and subregions, 1960-94

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  • Sari Pekkala

    (University of Jyväskylä, School of Business and Economics, Centre for Economic Research, Finland)

Abstract

This paper analyses the convergence of regional products in Finland using two different data sets. Firstly, β- and σ-convergence was estimated for the 12 Finnish provinces during 1960–94. Convergence was found to be strong in 1960–80, but after 1980 regional disparities started growing again. Secondly, a similar study was conducted for the 88 small-scale subregions in 1988–94. As with the provinces, the subregions’ relative growth performance and cross-sectional convergence dynamics were evaluated using Markov chain transition matrices. No clear evidence for σ- or β-convergence was found here, but the dynamic analysis revealed a rapidly evolving distribution of gross regional products. Thus the type of regional classification and method used can markedly affect the results obtained in a convergence study.

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Bibliographic Info

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

Volume (Year): 12 (1999)
Issue (Month): 1 (Spring)
Pages: 28-40

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Handle: RePEc:fep:journl:v:12:y:1999:i:1:p:28-40

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  1. Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
  2. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  3. 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.
  4. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-43, December.
  5. 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.
  6. repec:chb:bcchwp:03 is not listed on IDEAS
  7. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
  8. Aki Kangasharju, 1998. "Growth and convergence in Finland : effects of regional features," Finnish Economic Papers, Finnish Economic Association, vol. 11(1), pages 51-61, Spring.
  9. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
  10. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
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Cited by:
  1. Ziv Chinzara & Radhika Lahiri, 2012. "Financial Intermediation and Costly Technology Adoption under Uncertainty: A Political Economy Perspective," School of Economics and Finance Discussion Papers and Working Papers Series 295, School of Economics and Finance, Queensland University of Technology.
  2. Aki Kangasharju & Pekkala & Sari, 2001. "Regional Economic Repercussions of an Economic Crisis: A Sectoral Analysis," Discussion Papers 248, Government Institute for Economic Research Finland (VATT).
  3. Heikki Loikkanen & Marja Riihelä & Risto Sullström, 2003. "Regional income convergence and inequality in boom and bust. Results from micro data in Finland 1971-2000, and especially during the 1990s," ERSA conference papers ersa03p514, European Regional Science Association.

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