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Relative Economic Performance in Finland: Regional Convergence, 1934-1993

Listed author(s):
  • Aki Kangasharju

KANGASHARJU A. (1999) Relative economic performance in Finland; regional convergence, 1934-1993, Reg. Studies 33 , 207-217. This paper analyses the convergence behaviour of the 88 Finnish subregions from 1934 to 1993 by examining the development of relative income levels. Convergence was studied both for the whole 59-year period as well as for two 30-year and three 10-year sub-periods. Convergence was found across the subregions. Moreover, convergence was found to be nonlinear, in that during growth periods the poorer subregions catch up with the richest one at a rate which is faster the smaller their initial income level. Catching up was found to be stronger from 1964 onwards than from 1934 to 1964. No inferior convergence club was found. KANGASHARJU A. (1999) La performance economique relative en Finlande: la convergence regionale de 1934 a 1993, Reg. Studies 33 , 207-217. Cet article cherche a analyser le comportement des 88 sous-regions de la Finlande quant a leur convergence entre 1934 et 1993 en examinant l'evolution des niveaux des revenus relatifs. On a etudie la notion de convergence sur toute la periode de 59 annees ainsi que sur deux periodes de 30 annees et sur trois periodes de 10 annees. La convergence etait a noter a travers les sousregions. Qui plus est, la convergence s'est averee non-lineaire, c'est a dire que pendant les periodes de croissance les sous-regions plus defavorisees rattrapent les sous-regions les plus riches. Plus leur niveau initial de revenu est faible, plus le rattrapage est forte. Le rattrapage s'avere plus fort a partir de 1964 par rapport a la periode de 1934 a 1964. Aucun regroupement de sous-regions ne se delimitait par une convergence inferieure. KANGASHARJU A. (1999) Relative wirtschaftliche Leistung in Finnland: Regionale Konvergenz im Zeitraum 1934-1993, Reg. Studies 33 , 207-217. Dieser Aufsatz analysiert das Annaherungsverhalten der 88 finnischen Teilregionen im Zeitraum 1934-93, indem er die Entwicklung relativer Einkommenshohen untersucht. Die Uberprufung der Konvergenz umfasste sowohl den Gesamtzeitraum von 59 Jahren als auch zwei Perioden von 30 Jahren und drei Zehnjahresabschnitte. Konvergenz liess liess sich in allen Teilregionen feststellen. Daruberhinaus erwies sich die Konvergenz als nicht linear: armere Regionen holten im Zeiten des Wachstums mit den wohlhabendsten umso schneller auf je niedriger ihr ursprungliches Einkommensniveau gewesen war. Es wurde festgestellt, dass das Aufholen nach 1964 schneller vonstatten ging als im Zeitraum 1934-64. Es bildete sich keine Gruppe geringfugigerer Konvergenz.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 33 (1999)
Issue (Month): 3 ()
Pages: 207-217

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Handle: RePEc:taf:regstd:v:33:y:1999:i:3:p:207-217
DOI: 10.1080/00343409950082409
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  1. Aki Kangasharju, 1998. "beta convergence in Finland: regional differences in speed of convergence," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 679-687.
  2. Baumol, William J & Wolff, Edward N, 1988. "Productivity Growth, Convergence, and Welfare: Reply," American Economic Review, American Economic Association, vol. 78(5), pages 1155-1159, December.
  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. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
  5. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
  6. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, vol. 8(4), pages 57-69, Winter.
  7. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
  8. 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.
  9. 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.
  10. 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.
  11. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 651-667.
  12. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
  13. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  14. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
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