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Regional convergence across the Finnish provinces and subregions, 1960-94

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  • Sari Pekkala

    (University of Jyväskylä, School of Business and Economics, Centre for Economic Research, Finland)

Abstract

This paper analyses the convergence of regional products in Finland using two different data sets. Firstly, β- and σ-convergence was estimated for the 12 Finnish provinces during 1960–94. Convergence was found to be strong in 1960–80, but after 1980 regional disparities started growing again. Secondly, a similar study was conducted for the 88 small-scale subregions in 1988–94. As with the provinces, the subregions’ relative growth performance and cross-sectional convergence dynamics were evaluated using Markov chain transition matrices. No clear evidence for σ- or β-convergence was found here, but the dynamic analysis revealed a rapidly evolving distribution of gross regional products. Thus the type of regional classification and method used can markedly affect the results obtained in a convergence study.

Suggested Citation

  • Sari Pekkala, 1999. "Regional convergence across the Finnish provinces and subregions, 1960-94," Finnish Economic Papers, Finnish Economic Association, vol. 12(1), pages 28-40, Spring.
  • Handle: RePEc:fep:journl:v:12:y:1999:i:1:p:28-40
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    References listed on IDEAS

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    1. 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.
    2. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    3. Aki Kangasharju, 1998. "Growth and convergence in Finland : effects of regional features," Finnish Economic Papers, Finnish Economic Association, vol. 11(1), pages 51-61, Spring.
    4. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    5. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
    6. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-389, September.
    7. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-443, December.
    8. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    9. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
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    Citations

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    Cited by:

    1. Kangasharju, Aki & Pekkala, Sari, 2001. "Regional Economic Repercussions of an Economic Crisis: A Sectoral Analysis," Discussion Papers 248, VATT Institute for Economic Research.
    2. Heikki Loikkanen & Marja Riihelä & Risto Sullström, 2003. "Regional income convergence and inequality in boom and bust. Results from micro data in Finland 1971-2000, and especially during the 1990s," ERSA conference papers ersa03p514, European Regional Science Association.
    3. Ziv Chinzara & Radhika Lahiri, 2012. "Financial Intermediation and Costly Technology Adoption under Uncertainty: A Political Economy Perspective," School of Economics and Finance Discussion Papers and Working Papers Series 295, School of Economics and Finance, Queensland University of Technology.

    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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