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Growth in Regions

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  • Nicola Gennaioli
  • Rafael La Porta
  • Florencio Lopez de Silanes
  • Andrei Shleifer

Abstract

We use a newly assembled sample of 1,503 regions from 82 countries to compare the speed of per capita income convergence within and across countries. Regional growth is shaped by similar factors as national growth, such as geography and human capital. Regional convergence is about 2.5% per year, not more than 1% per year faster than convergence between countries. Regional convergence is faster in richer countries, and countries with better capital markets. A calibration of a neoclassical growth model suggests that significant barriers to factor mobility within countries are needed to account for the evidence.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18937.

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Date of creation: Apr 2013
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Handle: RePEc:nbr:nberwo:18937

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  1. Antonio Spilimbergo & Natasha Xingyuan Che, 2012. "Structural Reforms and Regional Convergence," IMF Working Papers 12/106, International Monetary Fund.
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  10. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
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Cited by:
  1. Holger Breinlich & Gianmarco I. P. Ottaviano & Jonathan R. W. Temple, 2013. "Regional growth and regional decline," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 51575, London School of Economics and Political Science, LSE Library.
  2. Christian Lessmann, 2011. "Spatial Inequality and Development - Is there an Inverted-U Relationship?," CESifo Working Paper Series 3622, CESifo Group Munich.

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