Scandinavian Working Papers in Economics

Seminar Papers,
Stockholm University, Institute for International Economic Studies

No 601: Convergence in Per Capita Income and Migration Across the Swedish Counties 1906-1990

Joakim Persson
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Joakim Persson: Institute for International Economic Studies, Stockholm University, Postal: Stockholm University, S-106 91 Stockholm, Sweden

Abstract: This paper finds strong and robust evidence of convergence in per capita income across the twenty-four Swedish counties 1906-1990. It is found that migration has a positive effect, albeit small, on the speed of convergence. Holding net migration constant, the estimated speed of convergence is around 3 percent per year, which is higher than estimates obtained by Barro and Sala-i-Martin (1991,1992) for other regional data sets. One likely explanation of this finding is that the current study, as opposed to previous studies, adjusts incomes to account for regional differences in cost of living.

Keywords: Regional Economic Growth; Convergence; Migration

JEL-codes: O15; O18; O47

35 pages, October 30, 1997

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