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Convergence hypothesis of regional income in Korea

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  • Ji Kim

Abstract

Using data on per capita income among 13 regions in Korea over the period 1985-2002, regional convergence is evaluated. This study uses panel cointegration tests and a random coefficient model that allows both regional differences and similarities to estimate the Solow growth model. The model also corrects for heteroscedasticity and serial correlation. Evidence is found in favour of regional convergence in Korea, with a rate of convergence of around 8% a year. The results also indicate that the investment rate in physical capital has a significantly positive effect and the population growth has a significantly negative effect on the growth rate of per capita income, holding its initial level constant.

Suggested Citation

  • Ji Kim, 2005. "Convergence hypothesis of regional income in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 431-435.
  • Handle: RePEc:taf:apeclt:v:12:y:2005:i:7:p:431-435
    DOI: 10.1080/13504850500109824
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    References listed on IDEAS

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    Cited by:

    1. Evan Lau & Koon Po Lee, 2008. "Interdependence of income between China and ASEAN-5 countries," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 1(2), pages 148-161, June.
    2. Phillips, Kerk L. & Chen, Baizhu, 2011. "Regional growth in China: An empirical investigation using multiple imputation and province-level panel data," Research in Economics, Elsevier, vol. 65(3), pages 243-253, September.
    3. repec:sos:sosjrn:180111 is not listed on IDEAS

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