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Myths about Beta-Convergence

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  • Gluschenko, Konstantin

Abstract

A popular methodology of studying spatial income inequality is analysis of beta-convergence (i.e. an inverse relationship between current income per capita and its initial level). Its widespread use is based on a belief that the economic growth theory predicts income convergence among economies (countries or regions within a country), and that beta-convergence suggests decreasing income inequality. This article demonstrates that these are nothing but myths; hence, analyzing of beta-convergence cannot serve as an adequate methodology for studying and predicting the evolution of spatial income inequality.

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  • Gluschenko, Konstantin, 2012. "Myths about Beta-Convergence," MPRA Paper 66823, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66823
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    References listed on IDEAS

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    Cited by:

    1. Belova T.A. & Prudnikov V.B. & Abzalilova L.R. & Bakhitova R.Kh., 2019. "Convergence of Economic Growth in Russian Megacities," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 221-233.
    2. Vera Ivanova, 2015. "How Space Channels Wage Convergence: The Case of Russian Cities," HSE Working papers WP BRP 120/EC/2015, National Research University Higher School of Economics.
    3. Vera Ivanova, 2018. "Spatial convergence of real wages in Russian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 1-30, July.
    4. Dmitriy Sergeevich Tereshchenko, 2020. "Empirical Analysis of Publication Activity: Is There à Convergence of Russian Regions?," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 3, pages 109-138.
    5. Gluschenko, Konstantin, 2023. "Convergence Patterns of Regional Income Inequalities in Russia," MPRA Paper 118055, University Library of Munich, Germany.
    6. E. Taymaz, 2022. "Regional Convergence or Polarization: The Case of the Russian Federation," Regional Research of Russia, Springer, vol. 12(4), pages 469-482, December.

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    More about this item

    Keywords

    spatial income inequality; convergence; economic growth;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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