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Growth in Regions

  • Nicola Gennaioli
  • Rafael LaPorta
  • Florencio Lopez-de-Silanes
  • Andrei Shleifer

We use a newly assembled sample of 1,528 regions from 83 countries to compare the speed of per capita income convergence within and across countries.� Regional growth is shaped by similar factors as national growth, such as geography and human capital.� Regional convergence rate is about 2% per year, comparable to that between countries.�� Regional convergence is faster in richer countries, and countries with better capital markets.� A calibration of a neoclassical growth model suggests that significant barriers to factor mobility within countries are needed to account for the evidence.�

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Paper provided by Harvard University OpenScholar in its series Working Paper with number 73436.

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