IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v35y2001i3p197-205.html
   My bibliography  Save this article

Convergence of Living Standards Among Irish Regions: The Roles of Productivity, Profit Outflows and Demography, 1960-1996

Author

Listed:
  • Eoin O'Leary

Abstract

Using a consistent data set, this paper presents evidence, for the first time, on the degree of convergence of living standards among Irish planning regions between 1960 and 1996. The basic decomposition of living standards into productivity and demographic factors is extended to include the income/output ratio, which is significant in Ireland due to the presence of substantial profit outflows since the mid-1980s. Living standards converged strongly among regions between 1960 and 1979, but between 1979 and 1996 there was weak divergence. The chief proximate cause of this reversal was the slowdown in the effect of productivity on the degree of convergence of living standards. The emergence of profit outflows exerted a negative effect on living standards growth, while the Irish 'demographic dividend' boosted growth but had a divergent effect on living standards growth during the 1980s and 1990s. A renewed future role for regional policy focused on the major urban centres is proposed A partir d'un ensemble de donnees ordonnees, cet article cherche a presenter pour la premiere fois des preuves qui demontrent la convergence des niveaux de vie dans les zones d'etude et d'amenagement du territoire d'Irlande entre 1960 et 1996. La repartition fondamentale des niveaux de vie en facteurs de productivite et demographiques se voit etendre pour inclure le rapport revenu/rendement, qui s'avere important en Irlande a cause des sorties de profit non-negligeables depuis le milieu des annees 1980. Entre 1960 et 1979 les niveaux de vie dans les regions ont fortement converge, en revanche ils se sont creuses legerement entre 1979 et 1996. Ce renversement de tendance s'explique principalement par le ralentissement de l'impact de la productivite sur la convergence des niveaux de vie. L'apparition des sorties de profit a eu un impact negatif sur l'amelioration des niveaux de vie, tandis que les 'dividendes demographiques' irlandais ont donne du tonus a la croissance alors qu'ils ont eu un impact divergent sur l'amelioration des niveaux de vie dans les annees 1980 et 1990. On propose que la politique regionale prend un role futur qui porte sur les grands centres urbains Mit Hilfe einer durchweg bestandigen Datenreihe stellt dieser Aufsatz erstmalig Beweise fur das Ausmass der Konvergenz von Lebensstandarden in irischen Planungsregionen im Zeitraum 1960-1996 vor. Die grundlegende Zerlegung des Lebensstandards in Leistungs- und demographische Faktoren wird auf das Verhaltnis von Aufwand und Ertrag ausgedehnt, welches in Irland wegen des Vorkommens betrachtlichen Abfliessens von Gewinn seit Mitte der achtziger Jahre bedeutsam ist. Die Lebensstandarde naherten sich in den Regionen im Zeitraum 1960-1979 stark an einander an, doch in den Jahren 1979-1996 liess diese Annaherung stark nach. Der unmittelbare Hauptgrund dieser Wende war ein Nachlassen der Auswirkung auf das Ausmass der Konvergenz der Lebensstandarde. Als Gewinn begann, abzufliessen, wirkte sich dies negativ auf den Anstieg des Lebensstandards aus, wahrend die irische ''demographische Dividende'' zwar dem Wachstum Auftrieb gab, sich jedoch auf die Zunahme der Lebensstandarde in den achtiger und neunziger Jahren divergierend auswirkte. Es wird vorgeschlagen, dass eine erneue, zukunftige Rolle fur die Regionalpolitik in der Hinwendung auf bedeutende stadtische Zentren liegen konnte.

Suggested Citation

  • Eoin O'Leary, 2001. "Convergence of Living Standards Among Irish Regions: The Roles of Productivity, Profit Outflows and Demography, 1960-1996," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 197-205.
  • Handle: RePEc:taf:regstd:v:35:y:2001:i:3:p:197-205
    DOI: 10.1080/00343400123670
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400123670
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343400123670?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gerard Caprio & Patrick Honohan, 2008. "Banking Crises," Center for Development Economics 2008-09, Department of Economics, Williams College.
    2. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    3. Ross, Miceal, 1972. "Further Data on County Incomes in the Sixties," Research Series, Economic and Social Research Institute (ESRI), number GRS64.
    4. Gerry Boyle & Tom McCarthy & Jim Walsh, 1999. "Regional Income Differentials and the Issue of Regional Equalisation in Ireland," Economics Department Working Paper Series n880499, Department of Economics, National University of Ireland - Maynooth.
    5. J. E. Birnie & D. M. W. N. Hitchens, 1998. "Productivity and Income Per Capita Convergence in a Peripheral European Economy: The Irish Experience," Regional Studies, Taylor & Francis Journals, vol. 32(3), pages 223-234.
    6. Costas Siriopoulos & Dimitrios Asteriou, 1998. "Testing for Convergence Across the Greek Regions," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 537-546, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eoin O'leary, 2003. "Aggregate and Sectoral Convergence among Irish Regions: The Role of Structural Change, 1960-96," International Regional Science Review, , vol. 26(4), pages 483-501, October.
    2. Tamas Dusek, 2006. "Regional Income Differences in Hungary - A Multi-Level Spatio-Temporal Analysis," ERSA conference papers ersa06p284, European Regional Science Association.
    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. Xanthippi Chapsa & Athanasios L. Athanasenas & Nikolaos Tabakis, 2019. "Real Convergence in EU-15: A Comparative Analysis of North versus South Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 3-21.
    5. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β‐Convergence Differ? A Meta‐Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    6. O'Leary, Eoin, 1999. "Regional Income Estimates for Ireland: 1995," ERSA conference papers ersa99pa162, European Regional Science Association.
    7. Eoin O'Leary, 1999. "Regional Income Estimates for Ireland, 1995," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 805-814.
    8. 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.
    9. Efthymios Tsionas, 2002. "Another Look at Regional Convergence in Greece," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 603-609.
    10. Anthony Murphy & Brendan M. Walsh & Frank Barry, 2003. "The economic appraisal system for projects seeking support from the industrial development agencies," Open Access publications 10197/1600, School of Economics, University College Dublin.
    11. Orhan KARACA, 2018. "Türkiye’de Bölgesel Yakınsamanın 50 Yılı: Yeni Veri Seti ve 1960-2010 Dönemi Analizi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(35).
    12. Patel, Dev & Sandefur, Justin & Subramanian, Arvind, 2021. "The new era of unconditional convergence," Journal of Development Economics, Elsevier, vol. 152(C).
    13. Valérie Mignon & Christophe Hurlin, 2007. "Une synthèse des tests de cointégration sur données de panel," Économie et Prévision, Programme National Persée, vol. 180(4), pages 241-265.
    14. Jose Villaverde, 2005. "Provincial convergence in Spain: a spatial econometric approach," Applied Economics Letters, Taylor & Francis Journals, vol. 12(11), pages 697-700.
    15. Yao, Shujie & Wei, Kailei, 2007. "Economic growth in the presence of FDI: The perspective of newly industrialising economies," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 211-234, March.
    16. Monica Laura Zlati & Romeo Victor Ionescu & Valentin Marian Antohi & Veronica Grosu, 2022. "Growth and integration's impact under a new dynamic approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 7057-7092, May.
    17. Diana Gutiérrez Posada & Fernando Rubiera Morollón & Ana Viñuela, 2018. "Ageing Places in an Ageing Country: The Local Dynamics of the Elderly Population in Spain," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(3), pages 332-349, July.
    18. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2008. "Empirics of Growth and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 3, Edward Elgar Publishing.
    19. Gerard Caprio & Patrick Honohan, 2008. "Banking Crises," Center for Development Economics 2008-09, Department of Economics, Williams College.
    20. Goletsis, Y. & Chletsos, M., 2011. "Measurement of development and regional disparities in Greek periphery: A multivariate approach," Socio-Economic Planning Sciences, Elsevier, vol. 45(4), pages 174-183, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:35:y:2001:i:3:p:197-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.