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A long-run perspective on Latvian regional gross domestic product inequality, 1925–2016

Author

Listed:
  • Ola Honningdal Grytten

    (Department of Economics, Norwegian School of Economics NHH, Bergen, Norway)

  • Zenonas Norkus

    (Institute of Sociology and Social Work, Faculty of Philosophy, Vilnius University, Vilnius, Lithuania)

  • Jurgita Markevičiūtė

    (Institute of Sociology and Social Work, Faculty of Philosophy, Vilnius University, Vilnius, Lithuania)

  • Jānis Šiliņš

    (Vidzeme University of Applied Sciences, Valmiera, Latvia)

Abstract

This paper for the first time calculates the historical regional GDP (rGDP) for an Eastern European country by using the methodology of Frank Geary and Tom Stark [2002. Examining Ireland's post-famine economic growth performance. The Economic Journal, 112(482):919–935]. The estimates cover the period 1925–1935 and are made for the historical Latvian regions Kurzeme, Vidzeme, Zemgale, Latgale, and Riga as well as within the contemporary NUTS3 units. The results are compared with the GDP disparity of the NUTS3 regions of the restored independent Latvia (2001–2016). The main findings are that the sigma divergence remained stable. Direct comparisons of regional growth rates indicate that economically more advanced regions were more sensitive to business cycles than less advanced regions. Hence, sigma divergence seems to prevail in times of high growth and convergence in times of low growth.

Suggested Citation

  • Ola Honningdal Grytten & Zenonas Norkus & Jurgita Markevičiūtė & Jānis Šiliņš, 2024. "A long-run perspective on Latvian regional gross domestic product inequality, 1925–2016," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 24(1), pages 88-115.
  • Handle: RePEc:bic:journl:v:24:y:2024:i:1:p:88-115
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2024.2325232
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    More about this item

    Keywords

    Regional gross domestic product; cross-regional economic inequality; interwar Latvia; restored independent Latvia; sigma convergence; beta convergence;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-

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