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Aggregate economic fluctuations and regional convergence: the Finnish case 1988-95

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  • Sari Pekkala

Abstract

This paper analyses the connection between aggregate economic fluctuations and regional productivity convergence in Finland during the period 1988-95. Markov chain transition matrices and mobility indices were used to examine the regional distribution of productivity. The results indicated that high intra-distribution mobility occurred during booms, when regional convergence potential was also at its highest. Conversely, recession years were characterized by much lower mobility and a more divergent regional pattern. These findings bear important implications in terms of regional policy planning, as it seems that poor regions do not manage to keep up with the rich ones during slumps, whereas regional disparities diminish naturally during boom years.

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Bibliographic Info

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

Volume (Year): 32 (2000)
Issue (Month): 2 ()
Pages: 211-219

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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:211-219

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Cited by:
  1. W.A. NaudÈ & W.F. Krugell, 2003. "An Inquiry into Cities and their Role in Subnational Economic Growth in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 476-499, December.
  2. Andrea Elekes, 2011. "Cohesion and/or Growth?," Public Finance Quarterly, State Audit Office of Hungary, vol. 56(1), pages 108-124.
  3. Hasan Engin Duran, 2011. "Short run dynamics of income disparities and regional cycle synchronization," ERSA conference papers ersa11p937, European Regional Science Association.
  4. 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).
  5. Andres Rodríguez-Pose & Ugo Fratesi, 2003. "Regional economic cycles and the emergence of sheltered economies in the periphery of the EU," ERSA conference papers ersa03p189, European Regional Science Association.
  6. Stefano Magrini & Margherita Gerolimetto & Hasan Engin Duran, 2011. "Distortions in Cross-Sectional Convergence Analysis when the Aggregate Business Cycle is Incomplete," Working Papers 2011_07, Department of Economics, University of Venice "Ca' Foscari".
  7. Stephen Dobson & Carlyn Ramlogan, 2002. "Convergence and divergence in Latin America, 1970-1998," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 465-470.
  8. S. Dobson & C. Ramlogan, 2002. "Economic Growth and Convergence in Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 83-104.

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