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


  • 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.

Suggested Citation

  • Aki Kangasharju, 1999. "Relative Economic Performance in Finland: Regional Convergence, 1934-1993," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 207-217.
  • Handle: RePEc:taf:regstd:v:33:y:1999:i:3:p:207-217
    DOI: 10.1080/00343409950082409

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    References listed on IDEAS

    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. 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.
    3. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
    4. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, vol. 8(4), pages 57-69, Winter.
    5. 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.
    6. 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.
    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. 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.
    9. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 651-667.
    10. 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.
    11. 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.
    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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    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. 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. Fernando Barreiro-Pereira, 2014. "Megacities And Countries: Urbanization And Real Convergence," ERSA conference papers ersa14p1573, European Regional Science Association.
    4. Ajit Bhalla & Shujie Yao & Zongyi Zhang, 2003. "Regional economic performance in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 25-39, March.
    5. Nicola D. Coniglio & Francesco Prota, 2011. "Economic Crises and Regional Convergence in the EU: An Exploration of Facts, Theories and Policy Implications," Chapters,in: The Economic Crisis and European Integration, chapter 5 Edward Elgar Publishing.
    6. Alasia, Alessandro, 2003. "Sub-Provincial Income Disparity in Canada: Evidence From 1992 to 1999," Agriculture and Rural Working Paper Series 28057, Statistics Canada.


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