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Convergence hypothesis of regional income in Korea

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  • Ji Kim
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    Abstract

    Using data on per capita income among 13 regions in Korea over the period 1985-2002, regional convergence is evaluated. This study uses panel cointegration tests and a random coefficient model that allows both regional differences and similarities to estimate the Solow growth model. The model also corrects for heteroscedasticity and serial correlation. Evidence is found in favour of regional convergence in Korea, with a rate of convergence of around 8% a year. The results also indicate that the investment rate in physical capital has a significantly positive effect and the population growth has a significantly negative effect on the growth rate of per capita income, holding its initial level constant.

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    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850500109824&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 12 (2005)
    Issue (Month): 7 ()
    Pages: 431-435

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    Handle: RePEc:taf:apeclt:v:12:y:2005:i:7:p:431-435

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    1. Sarno, Lucio & Taylor, Mark P, 1997. "The Behaviour of Real Exchange Rates During the Post-Bretton Woods Period," CEPR Discussion Papers 1730, C.E.P.R. Discussion Papers.
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    8. Lee Kian Lim & Michael McAleer, 2003. "Convergence and Catching Up in ASEAN: A Comparative Analysis," CIRJE F-Series CIRJE-F-218, CIRJE, Faculty of Economics, University of Tokyo.
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    Cited by:
    1. Lau, Evan & Lee, Koon Po, 2007. "Interdependence of Income between China and ASEAN-5 Countries," MPRA Paper 2231, University Library of Munich, Germany.
    2. Chen, Baizhu & Phillips, Kerk L., 2008. "Regional Growth in China: An Empirical Investigation using Multiple Imputation and Province-level Panel Data," MPRA Paper 23553, University Library of Munich, Germany.

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