Scandinavian Working Papers in Economics

EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

No 186: GEOGRAPHY, COST-OF-LIVING, AND DETERMINANTS TO ECONOMIC GROWTH: A STUDY OF THE SWEDISH REGIONS, 1911-1993

Patrik Gustavsson () and Joakim Persson
Additional contact information
Patrik Gustavsson: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Joakim Persson: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

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

JEL-codes: C29; O18; R11

19 pages, December 1, 2003

Full text files

eijswp0186.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Nanhee Lee ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:49.