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Changing the economic landscape: The phenomenon of regional inversion in the US manufacturing sector**The authors would like to express their thanks to three anonymous referees for their helpful comments and observations on an earlier version of this article. Financial support from grants PB97 1028 and PB98 1614 of DGES is gratefully acknowledged

Author

Listed:
  • Lanaspa Santolaria, Luis Fernando
  • Montañés, Antonio
  • Olloqui Cuartero, Luisa Irene
  • Sanz Gracia, Fernando

Abstract

Regional inversion is the name given to the phenomenon whereby the traditional industrial areas of certain countries lose their weight in favor of what were formerly peripheral zones. Against this background our first objective is to offer a formal and rigorous definition of the concept of regional inversion from an econometric standpoint. To that end we relate such a process with the long run concepts of convergence and catching up. Secondly, we test this definition through the use of unit root statistics and apply these to demonstrate the presence of this phenomenon in some of the US two digit SIC industries.

Suggested Citation

Handle: RePEc:eee:paresc:v:81:y:2002:i:4:p:461-482
DOI: 10.1111/j.1435-5597.2002.tb01244.x
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JEL classification:

  • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
  • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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