Sigma Convergence Versus Beta Convergence: Evidence from U.S. County-Level Data

Young, Andrew T.; Higgins, Matthew J.; Lévy, Daniel

doi:10.2139/ssrn.441460

Cited by 109 publications

(123 citation statements)

References 17 publications

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“…In the sample period of 1993-1994 to 1999-2000, 9 out of 14 states experienced productivity improvement. While during the period of 1993-1994 to 1996-1997, 6 states witnessed growth in TFP, the corresponding number was 7 and 14 during the periods 1997-1998to 2002-2003and 2003-2005respectively. During 1993to 1996-1997, the states experiencing positive growth in TFP were Rajasthan (3%), Kerala (2.3%), Tamil Nadu (1.8%), West Bengal (4.95%), Haryana (0.26%) and Maharashtra (1.15%).…”

Section: Changes In Total Factor Productivitymentioning

confidence: 97%

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Productivity and convergence in India: A state-level analysis

Kumar

Managi

2012

Journal of Asian Economics

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Total factor productivity plays an important role in the growth of the economy. Using recently available state level data over 1993 and 2005, we find widespread regional variation in productivity changes. In the beginning of the liberalization era, improvement in technical efficiency contributes to the growth of the productivity. In the later periods, however, the productivity growth is governed by the growth in technical progress. We also study about convergence in state level and find a tendency of convergence in productivity growth though only states that are efficient remain on the production frontier.

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Section: Changes In Total Factor Productivitymentioning

confidence: 97%

“…The earnings of self employed enter into national accounts as mixed factor income reflecting the combined income of both labor and capital. Mixed income accounts for about 45 percent of the national income and 79 percent of the income of the unorganized sector in 2002-2003(Bosworth et al, 2007.…”

Section: Our Empirical Strategymentioning

confidence: 99%

Productivity and convergence in India: A state-level analysis

Kumar

Managi

2012

Journal of Asian Economics

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“…error term (Sala-i-Martin, 1996;Young, Higgins and Daniel, 2008). Since is assumed to be constant across regions, the balanced growth paths are identical.…”

Section: Measuring the Effectiveness Of Cohesion Policymentioning

confidence: 99%

“…Since is assumed to be constant across regions, the balanced growth paths are identical. Rearranging (1) yields to the more common version of the neoclassical growth model (Young, Higgins and Daniel, 2008):…”

Section: Measuring the Effectiveness Of Cohesion Policymentioning

confidence: 99%

Econometric Evaluation of EU Cohesion Policy: A Survey

Hagen

Mohl²

2016

Empirical Evidence on the Macroeconomic Effects of EU Cohesion Policy

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp09052.pdf Non-technical summaryMore than one third of the total EU budget is spent on so-called Cohesion Policy via the structural funds. Its main purpose is to reduce disparities among EU regions and to promote economic growth and convergence. Therefore, the convergence process of EU regions is a question of high political importance. The overall empirical evidence points to a small convergence effect of all or at least some European regions. However, whether or not this potential success results from EU Cohesion Policy remains an open question. The existing empirical evidence has provided mixed, if not contradictory, results. While some authors do find evidence of a positive impact of structural funds on economic growth, others find little to no impact at all. Against this background, this paper provides a fundamental review of the econometric evaluation of EU Cohesion Policy in order to shed light on the reasons for the diverging results. It has been shown that the econometric evaluation of EU Cohesion Policy is hampered by several econometric issues. Based on these issues we discuss potential solutions on how to cope with these problems and discuss the related literature.The most that can be concluded from empirical studies using country-level data is that Cohesion Policy seems to be only conditionally effective. Given a good quality institutional setup or decentralised governmental structures, Cohesion Policy has a positive impact on growth. However, using regional level data might be the preferable alternative because, first, EU Cohesion Policy focuses on the development and convergence of regions and, second, the robustness of the results is increased by the higher number of cross sections. The majority of the studies based on EU regions find at least a weak positive effect.One explanation for the weak results might be the fact that almost all studies are derived from a neoclassical growth model assuming that EU Cohesion Policy increases investments, and ultimately raising the economic growth rate. However, there is some empirical evidence that Cohesion Policy may only have a modest impact on investments. Moreover, we know very little about the labour market impact of EU Cohesion Policy. Hence, one task for future studies will be to investigate more thoroughly the channels through i which EU Cohesion Policy works.Another reason for the inconclusive empirical results m...

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“…sigma-konwergencja, czyli malejący trend w zakresie rozproszenia w poszczególnych krajach dochodu realnego per capita, czy beta-konwergencja, tj. adaptacja stopy wzrostu do oddalenia poziomu dochodu od docelowego pułapu równowagi -występująca w wersji absolutnej i warunkowej [Barro 1997;Berbeka 2006;Geodecki 2006;Michalczyk 2012a;2014;NBP 2009;Young, Higgins, Levy 2008;Paun 2015;Soszyńska 2008].…”

Section: Konwergencja Realna I Jej Pomiarunclassified

Mierniki konwergencji realnej wybranych krajów strefy euro. Wnioski dla Polski

Michalczyk¹

2016

Ekonomia XXI Wieku

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Sigma Convergence Versus Beta Convergence: Evidence from U.S. County-Level Data

Cited by 109 publications

References 17 publications

Productivity and convergence in India: A state-level analysis

Productivity and convergence in India: A state-level analysis

Econometric Evaluation of EU Cohesion Policy: A Survey

Mierniki konwergencji realnej wybranych krajów strefy euro. Wnioski dla Polski

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