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Regional economic convergence: Do policy instruments make a difference?

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  • Somik V. Lall

    ()
    (The Institute of Public Policy, George Mason University, MS 3C6, 4400 University Drive Fairfax, VA 22030, USA)

  • Serdar Yilmaz

    ()
    (The Institute of Public Policy, George Mason University, MS 3C6, 4400 University Drive Fairfax, VA 22030, USA)

Abstract

The relationship between public capital, regional output and private sector productivity has been an issue of considerable interest in the regional development literature. There have however been few studies that develop linkages between these issues and the broader literature on economic convergence. This paper presents an innovative methodology to examine the process of regional economic convergence across U.S. states. We examine the effects of economic variables such as human and public capital in the convergence process, and control for business cycle and region specific effects in the analysis. Further, specification problems arising from spatial dependence are also addressed. Results from the empirical analysis show that the speed of convergence is influenced by region specific characteristics and the availability of trained labor in neighboring regions.

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 35 (2001)
Issue (Month): 1 ()
Pages: 153-166

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Handle: RePEc:spr:anresc:v:35:y:2001:i:1:p:153-166

Note: Received: November 1998/Accepted: March 2000
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Cited by:
  1. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
  2. Nissan, Edward & Carter, George, 2010. "States' Nonagricultural Employment at the 3-Digit North American Industry Classification System (NAICS) Level," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1).
  3. Ismail Genc & Jon Miller & Anil Rupasingha, 2011. "Stochastic convergence tests for US regional per capita personal income; some further evidence: a research note," The Annals of Regional Science, Springer, vol. 46(2), pages 369-377, April.
  4. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier.
  5. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Mapping the European regional educational distribution: Educational attainment and inequality," Working Papers 2007-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  6. Steven Yamarik, 2006. "Solow and the states: New evidence," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 571-582.
  7. Martí, Luisa & Puertas, Rosa & Fernández, J. Ismael, 2011. "Industrial productivity and convergence in Chinese regions: The effects of entering the world trade organisation," Journal of Asian Economics, Elsevier, vol. 22(2), pages 128-141, April.
  8. Rodríguez-Pose, Andrés & Tselios, Vassilis, 2007. "Analysis of Educational Distribution in Europe: Educational Attainment and Inequality Within Regions," Papers DYNREG08, Economic and Social Research Institute (ESRI).
  9. Uzma Afzal, 2012. "Human Capital Convergence: Evidence from the Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 45-61, Jan-June.
  10. Steven Yamarik, 2011. "Human capital and state-level economic growth: what is the contribution of schooling?," The Annals of Regional Science, Springer, vol. 47(1), pages 195-211, August.
  11. Somik Lall, 2007. "Infrastructure and regional growth, growth dynamics and policy relevance for India," The Annals of Regional Science, Springer, vol. 41(3), pages 581-599, September.
  12. Stilianos Alexiadis & Matthias Koch & Tamás Krisztin, 2011. "Time series and spatial interaction: An alternative method to detect converging clusters," ERSA conference papers ersa11p1678, European Regional Science Association.
  13. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
  14. Jens K. Perret, 2011. "On the importance of growth spillovers and regional clustering in the Russian Federation?," Schumpeter Discussion Papers sdp11001, Universitätsbibliothek Wuppertal, University Library.
  15. Melanie Rapino & Benjamin Spaulding & Dean M. Hanink, 2006. "Have Per Capita Earnings and Income Converged across New England?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 37(4), pages 620-637.
  16. Michael Beenstock & Daniel Felsenstein, 2003. "Decomposing the Dynamics of Regional Earnings Disparities in Israel," ERSA conference papers ersa03p90, European Regional Science Association.
  17. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.

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