Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 284: Regional Policy and Convergence of Real per Capita Income Among Swedish Counties

Fredrik Bergström
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Fredrik Bergström: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

Abstract: This study analyses how regional policy, which was introduced around 1970, has affected regional growth of real per capita incomes in Sweden in the post-war period. The study shows: (a) that real per capita incomes in Swedish counties have converged since 1945, (b) support counties have not grown faster than other counties after 1970, (c) selective regional policy supports, which constitute an important part of Swedish regional policy, do not affect the regional growth rates, and (d) government expenditures seem to affect the regional growth of real per capita incomes negatively.

Keywords: Convergence of real per capita incomes; Regional policy; Industrial policy

JEL-codes: H20; H81; L52; L98; O20; R58

24 pages, November 23, 1998

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