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Regional Cohesion: Evidence and Theories of Regional Growth and Convergence

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Sala-i-Martin, Xavier

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Abstract

After arguing that the concepts of b-convergence and s-convergence are independently interesting, this paper extends the empirical evidence on regional growth and convergence across the United States, Japan, and five European nations. We confirm that the estimated speeds of convergence are surprisingly similar across data sets: regions tend to converge at a speed of approximately 2% per year. We also show that the inter-regional distribution of income in all countries has shrunk over time. We then argue that, among the proposed potential explanations of this phenomenon, the one-sector neoclassical growth model and the hypothesis of technological diffusion seem to be the only ones which survive scrutiny.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1075.

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Date of creation: Nov 1994
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Handle: RePEc:cpr:ceprdp:1075

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Related research
Keywords: Capital Mobility Convergence Endogenous Growth Neoclassical Growth Regional Cohesion Regional Economic Growth

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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