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Growth and convergence in Finland : effects of regional features

  • Aki Kangasharju

    (University of Jyväskylä, School of Business and Economics)

This paper analyses convergence across the 88 subregions in Finland from 1934 to 1993. The results indicate a rather strong a convergence and intra-distribution dynamics of income levels. This indicates that, although the dispersion in subregional income levels has diminished, some ofthe poorer subregions have risen into a higher income category, whereas some of the middle income subregions have fallen into a lower category. Since this development has not been deterministic, the paper also tests for the existence of distinct regional features that determine growth and convergence. Major finding is that though some regional features tend to determine growth, only a few of them actually pass the test of robustness.

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Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 11 (1998)
Issue (Month): 1 (Spring)
Pages: 51-61

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Handle: RePEc:fep:journl:v:11:y:1998:i:1:p:51-61
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  1. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  2. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  3. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
  4. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
  5. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
  6. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
  7. Barro, Robert J. & Lee, Jong-Wha, 1994. "Sources of economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 1-46, June.
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