EIJS Working Papers Series
GEOGRAPHY, COST-OF-LIVING, AND DETERMINANTS TO ECONOMIC GROWTH: A STUDY OF THE SWEDISH REGIONS, 1911-1993
() and Joakim Persson
Abstract: This paper analyses determinants to economic growth with a
spatial perspective using data on the Swedish counties for the period
1911-1993. We find that the county growth rate of income per capita is
strongly related to the growth rate of income per capita in contiguous
counties regardless of what explanatory variables are included in the
regressions. We also find empirical evidence of geographical spillovers
through the income per capita and market size in contiguous counties. In
addition, we find that population density and population age structure
impact the growth rate of income per capita only when incomes are not
adjusted for regional differences in cost-of-living. When correctly
adjusting for such differences, which rarely occur in the growth literature
that uses regional data, the growth effects of these variables disappear.
The regressions also show that the estimated growth effect of net
in-migration is negative and statistically significant.
Keywords: Spatial econometrics; Spillovers; Economic Growth; PPP-adjustment; Agglomeration; Population Age Structure; Migration; (follow links to similar papers)
JEL-Codes: C29; O18; R11; (follow links to similar papers)
19 pages, December 1, 2003
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