Using regional income data covering the time period since the early 1970s for all regions of
the Scandinavian countries the often addressed topic of income convergence is tested. The
empirical part of the paper applies different tests of convergence which are usually appearing
in connection with the question of convergence in relation to neoclassical growth models.
Following Sala-i-Martin the so-called beta-convergence test is applied but due to
methodological problems associated with this technique, alternative time series tests are also
considered. The newly introduced test by Nahar and Inder is applied to the income data,
where this methodology allows for a less restrictive interpretation of convergence in a time
series context compared to e.g. the Bernard-Durlauf unit root types of test. The time series
tests indicate that there is most support to the notion of absolute convergence in real incomes
among the regions of the Scandinavian countries in the sense that incomes converge towards
the region with the highest ‘leading’ income level (the 'leader').
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number
03-20.
Find related papers by JEL classification: R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Alfred Kleinknecht & Tom Poot, 1992.
"Do Regions Matter for R&D?,"
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[Downloadable!] (restricted)
Barro, Robert J & Sala-i-Martin, Xavier, 1992.
"Convergence,"
Journal of Political Economy,
University of Chicago Press, vol. 100(2), pages 223-51, April.
[Downloadable!] (restricted)
Barro, Robert J & Sala-i-Martin, Xavier, 1992.
"Convergence,"
Journal of Political Economy,
University of Chicago Press, vol. 100(2), pages 223-51, April.
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