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beta convergence in Finland: regional differences in speed of convergence

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  • Aki Kangasharju

Abstract

This paper estimates β convergence across the 88 Finnish small-scale subregions from 1934 to 1993 using taxable per capita income as an indicator of income level. The results resemble those obtained in other studies for larger areas: regional β convergence in Finland has been about 2% per year in the long run, whereas in the short run β has tended to be unstable. Furthermore, this paper finds that it is possible to identify regional factors which tend to determine growth rates and steady-state income levels. These determinants are found to affect regions' individual β convergences. The steady-state level and speed of a region's individual β seems to be inversely related: the higher the β the lower the steady-state level.

Suggested Citation

  • Aki Kangasharju, 1998. "beta convergence in Finland: regional differences in speed of convergence," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 679-687.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:679-687
    DOI: 10.1080/000368498325660
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    Cited by:

    1. Kangasharju, Aki & Pekkala, Sari, 2001. "Regional Economic Repercussions of an Economic Crisis: A Sectoral Analysis," Discussion Papers 248, VATT Institute for Economic Research.
    2. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    3. George Petrakos & Panagiotis Artelaris, 2009. "European Regional Convergence Revisited: A Weighted Least Squares Approach," Growth and Change, Wiley Blackwell, vol. 40(2), pages 314-331, June.
    4. Hakki Kutay Bolkol, 2019. "Analysis of Regional Income Convergence in Turkey," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(2), pages 01-28, April.
    5. Aki Kangasharju, 1999. "Relative Economic Performance in Finland: Regional Convergence, 1934-1993," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 207-217.
    6. Enflo, Kerstin, 2014. "Finland’s regional GDPs 1880-2010: estimates, sources and interpretations," Lund Papers in Economic History 135, Lund University, Department of Economic History.
    7. Soukiazis, Elias & Antunes, Micaela, 2011. "Is foreign trade important for regional growth? Empirical evidence from Portugal," Economic Modelling, Elsevier, vol. 28(3), pages 1363-1373, May.
    8. Ahmet Kýndap & Tayyar Dogan, 2019. "Regional Economic Convergence and Spatial Spillovers in Turkey," International Econometric Review (IER), Econometric Research Association, vol. 11(1), pages 1-23, April.
    9. Kangasharju, Aki & Nijkamp, Peter, 2001. "Innovation dynamics in space: local actors and local factors," Socio-Economic Planning Sciences, Elsevier, vol. 35(1), pages 31-56, March.
    10. Stephen Dobson & Carlyn Ramlogan, 2002. "Convergence and divergence in Latin America, 1970-1998," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 465-470.
    11. Elias Soukiazis & Micaela Antunes, 2004. "The evolution of real disparities in Portugal among the NUTS III regions. An empirical analysis based on the convergence approach," ERSA conference papers ersa04p54, European Regional Science Association.
    12. Joseph DeJuan & Marc Tomljanovich, 2005. "Income convergence across Canadian provinces in the 20th century: Almost but not quite there," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 567-592, September.
    13. Kangasharju, Aki & Pekkala, Sari, 2000. "The Effect Of Aggregate Fluctuations On Regional Economic Disparities In Finland," ERSA conference papers ersa00p26, European Regional Science Association.
    14. Manolis Christofakis & Athanasios Papadaskalopoulos, 2011. "Cohesion policy and regional disparities: The recent experience of Greece," Local Economy, London South Bank University, vol. 26(6-7), pages 517-531, September.
    15. Srinivas, Goli, 2014. "Demographic convergence and its linkage with health inequalities in India," MPRA Paper 79823, University Library of Munich, Germany, revised 05 Dec 2014.
    16. Grafström, Jonas & Jaunky, Vishal, 2017. "Convergence of Incentive Capabilities within the European Union," Ratio Working Papers 301, The Ratio Institute.
    17. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    18. Sergio J. Rey & Mark V. Janikas, 2003. "Convergence and space," Urban/Regional 0311002, University Library of Munich, Germany, revised 16 Nov 2003.

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