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Regional convergence in the UK, 1970-1995

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  • Seamus Mcguinness
  • Maura Sheehan

Abstract

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.

Suggested Citation

  • Seamus Mcguinness & Maura Sheehan, 1998. "Regional convergence in the UK, 1970-1995," Applied Economics Letters, Taylor & Francis Journals, vol. 5(10), pages 653-658.
  • Handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:653-658 DOI: 10.1080/135048598354357
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Bernard, Andrew B. & Durlauf, Steven N., 1996. "Interpreting tests of the convergence hypothesis," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 161-173.
    3. 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 365-384, Oct.-Dec..
    4. 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.
    5. 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, September.
    6. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
    7. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
    8. 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.
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    Cited by:

    1. Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2010. "The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model," MPRA Paper 20096, University Library of Munich, Germany.
    2. Stilianos Alexiadis & Matthias Koch & Tamás Krisztin, 2011. "Time series and spatial interaction: An alternative method to detect converging clusters," ERSA conference papers ersa11p1678, European Regional Science Association.
    3. Peter Gripaios & Paul Bishop & Sarah Keast, 2000. "Differences in GDP per head in GB counties: some suggested explanations," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1161-1167.
    4. Jenkins, Andrew & Wolf, Alison, 2004. "Regional variations in adult learning and vocational training: evidence from NCDS and WERS 98," LSE Research Online Documents on Economics 19469, London School of Economics and Political Science, LSE Library.
    5. Peter Gripaios & Paul Bishop, 2005. "Spatial inequalities in UK GDP per head: The role of private and public services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 945-958, December.
    6. Atanu Ghoshray & Faiza Khan, 2015. "New empirical evidence on income convergence," Empirical Economics, Springer, pages 343-361.
    7. Andrew Jenkins & Alison Wolf, 2004. "Regional Variations in Adult Learning and Vocational Training: Evidence from NCDS and WERS 98," CEE Discussion Papers 0037, Centre for the Economics of Education, LSE.

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