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Regional convergence in the UK, 1970-1995

  • Seamus Mcguinness
  • Maura Sheehan

This paper tests for the existence of long run inter-regional equilibrium relationships in income per capita within the UK over the period 1971-95. We examine both the cross-sectional and time-series evidence of inter-regional convergence. The time series approach allows us to investigate whether there are long-run regional equilibrium trends, whereas the cross-sectional analysis allows us to investigate whether the dispersion in per capita incomes between regions has narrowed. While it was found that some of the regions converged over time, there were no obvious explanations for why these regions converged and others did not. Moreover, with the exception of Northern Ireland and Scotland, regional policy appears to have had little impact on the relative positions of assisted regions in terms of their share of UK GDP.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 5 (1998)
Issue (Month): 10 ()
Pages: 653-658

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Handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:653-658
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  1. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
  2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  3. Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers 0159, National Bureau of Economic Research, Inc.
  4. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
  5. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
  6. Gudgin, Graham, 1995. "Regional Problems and Policy in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 11(2), pages 18-63, Summer.
  7. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-48, November.
  8. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
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