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Trends and cycles in regional economic growth

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  • Henning, Martin
  • Enflo, Kerstin
  • Andersson, Fredrik N.G.

Abstract

Using a novel dataset of regional GDP per worker from 1860 to 2009, this paper analyzes communalities in regional long-term growth trajectories for 24 Swedish regions. Wavelet Analysis and Principal Component Analysis are used to decompose regional growth trajectories and assess the extent that regional growth patterns share common trends and cyclical properties. The study found that regional growth trends show strong common features among groups of regions in Sweden. Natural-resource-rich regions benefited from the First Industrial Revolution. Contrary to regional development in many other European economies, a growth surge in Sweden later benefited virtually the whole country during the Second Industrial Revolution. The countrywide trend of growth slowed in the 1970s when the metropolitan regions became the main growth engines. In mid- and short-term cyclical movements, regions display more heterogeneous growth patterns, and we find evidence of mid-term, sequential lead–lag patterns in regional growth, especially between urban cores and the periphery.

Suggested Citation

  • Henning, Martin & Enflo, Kerstin & Andersson, Fredrik N.G., 2011. "Trends and cycles in regional economic growth," Explorations in Economic History, Elsevier, vol. 48(4), pages 538-555.
    • Handle: RePEc:eee:exehis:v:48:y:2011:i:4:p:538-555
    DOI: 10.1016/j.eeh.2011.07.001
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    2. José Aguilar-Retureta, 2015. "Regional income distribution in Mexico: new long-term evidence, 1895-2010," UB School of Economics Working Papers 2015/323, University of Barcelona School of Economics.
    3. Emanuele Felice, 2017. "The Roots of a Dual Equilibrium: GDP, Productivity and Structural Change in the Italian Regions in the Long-run (1871-2011)," Quaderni di storia economica (Economic History Working Papers) 40, Bank of Italy, Economic Research and International Relations Area.
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    9. Faustine Perrin & Mickaël Benaim, 2019. "Regional Patterns of Economic Development: A Typology of French Departments During the Industrialization," Studies in Economic History, in: Claude Diebolt & Auke Rijpma & Sarah Carmichael & Selin Dilli & Charlotte Störmer (ed.), Cliometrics of the Family, chapter 0, pages 197-235, Springer.
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    Economic history; Economic geography; Regional growth; Wavelet analysis; Sweden;
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