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Regional Growth and Migration: a Japan - U.S. Comparaison

  • Barro, R.J.
  • Sala-i-Martin, X.

Do poor economies grow faster than rich ones? This important economic question (which we call [beta]-convergence) is analyzed in this paper using two regional data sets: 47 Prefectures in Japan and 48 States of the U.S.. We find clear evidence of convergence in both countries: poor prefectures and states grow faster. We also find that there is intraregional as well as interregional convergence. We analyze the cross sectional standard deviation across prefectures and states. We find that in both countries there has been a long term decline (a phenomenon that we call [sigma]-convergence). Finally we study the determinants of the rates of regional in-migration and, again. find striking similarities. In both countries, the reaction of net in-migration rates to the log of initial income is slightly above .025, which indicates a slow (although very significant) speed of population adjustment to income differentials. We find little evidence in favor of the argument that population movements are the reason why we find convergence across economies.

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Paper provided by Yale - Economic Growth Center in its series Papers with number 650.

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Length: 55 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:yalegr:650
Contact details of provider: Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/~egcenter/

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  1. Mueser Peter R. & Graves Philip E., 1995. "Examining the Role of Economic Opportunity and Amenities in Explaining Population Redistribution," Journal of Urban Economics, Elsevier, vol. 37(2), pages 176-200, March.
  2. Barro, R.J. & Mankiw, N.G. & Sala-i-Martin, X., 1992. "Capital Mobility in Neoclassical Models of Growth," Papers 655, Yale - Economic Growth Center.
  3. Casey B. Mulligan & Xavier Sala-i-Martin, 1992. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," NBER Working Papers 3986, National Bureau of Economic Research, Inc.
  4. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
  5. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020, March.
  6. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
  7. Jorgenson, Dale W & Yun, Kun-Young, 1986. " Tax Policy and Capital Allocation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(2), pages 355-77.
  8. Jorgenson, Dale W & Yun, Kun-Young, 1990. "Tax Reform and U.S. Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S151-93, October.
  9. Shioji, Etsuro, 1996. "Regional Growth in Japan," CEPR Discussion Papers 1425, C.E.P.R. Discussion Papers.
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