Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Regional income convergence in the Scandinavian countries
() and Valdemar Smith
Abstract: Using regional income data covering the time period since
the early 1970s for all regions of
the Scandinavian countries the often
addressed topic of income convergence is tested. The
empirical part of
the paper applies different tests of convergence which are usually
in connection with the question of convergence in relation to
neoclassical growth models.
Following Sala-i-Martin the so-called
beta-convergence test is applied but due to
associated with this technique, alternative time series tests are also
considered. The newly introduced test by Nahar and Inder is applied to the
where this methodology allows for a less restrictive
interpretation of convergence in a time
series context compared to e.g.
the Bernard-Durlauf unit root types of test. The time series
indicate that there is most support to the notion of absolute convergence
in real incomes
among the regions of the Scandinavian countries in the
sense that incomes converge towards
the region with the highest
‘leading’ income level (the 'leader').
Keywords: Scandinavian countries; Regional income; Convergence; (follow links to similar papers)
JEL-Codes: R11; (follow links to similar papers)
20 pages, January 28, 2003
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