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On regional growth convergence in Great Britain

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  • Andrew Henley

Abstract

Henley A. (2005) On regional growth convergence in Great Britain, Regional Studies 39 , 1245-1260. This paper examines recent sub-regional output data for Great Britain to identify possible economic convergence. It concludes that sub-regional data are subject to substantial spatial autocorrelation. Conventional estimates of 'beta' convergence are subject to misspecification bias if spatial autocorrelation is not taken into account. Unconditional models fail to find any evidence for economic convergence - indeed, the most recent data point to significant economic divergence. Conditional models, controlling for region-specific steady-states and the influence of human capital accumulation, provide estimates closer to the 'stylized fact' of 2% per annum convergence. A further conclusion is that the use of regional price deflators may affect rates of convergence estimates. Spatial autocorrelation suggests that growth 'hot spots' can influence surrounding areas positively, but that poor economic performance in lagging areas may also have wider regional impacts.

Suggested Citation

  • Andrew Henley, 2005. "On regional growth convergence in Great Britain," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1245-1260.
    • Handle: RePEc:taf:regstd:v:39:y:2005:i:9:p:1245-1260
    DOI: 10.1080/00343400500390123
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    11. James Simmie, 2010. "The Information Economy and its Spatial Evolution in English Cities," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 23, Edward Elgar Publishing.
    12. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
    13. Rodrigo MENDIETA MUÑOZ & Nicola PONTAROLLO, 2018. "Territorial Growth in Ecuador: The Role of Economic Sectors," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 124-139, December.
    14. Vítor João Pereira Domingues Martinho, 2021. "Impact of Covid‐19 on the convergence of GDP per capita in OECD countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(S1), pages 55-72, November.
    15. Paul Bishop & Peter Gripaios, 2005. "Patterns Of Persistence And Mobility In Gdp Per Head Across Gb Counties," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 96(5), pages 529-540, December.
    16. Declan Curran, 2012. "British regional growth and sectoral trends: global and local spatial econometric approaches," Applied Economics, Taylor & Francis Journals, vol. 44(17), pages 2187-2201, June.
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    More about this item

    Keywords

    Economic growth; Convergence; Great Britain counties; Croissance economique; Convergence; Comtes de Grande-Bretagne; Wirtschaftswachstum; Konvergenz; Grafschaften des UK; Crecimiento economico; Convergencia; Condados de GB; JEL classifications: O0; R11; R12;
    All these keywords.

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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