Growth in Regions

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Growth in Regions

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Title: Growth in Regions
Author: Gennaioli, Nicola; La Porta, Rafael; Lopez De Silanes, Florencio; Shleifer, Andrei

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Citation: Gennaioli, Nicola, Rafael La Porta, Florencio Lopez de Silanes, and Andrei Shleifer. 2013. Growth in Regions. National Bureau of Economic Research Working Paper 18937: 1-43.
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Abstract: We use a newly assembled sample of 1,503 regions from 82 countries to compare the speed of per capita income convergence within and across countries. Regional growth is shaped by similar factors as national growth, such as geography and human capital. Regional convergence is about 2.5% per year, not more than 1% per year faster than convergence between countries. Regional convergence is faster in richer countries, and countries with better capital markets. A calibration of a neoclassical growth model suggests that significant barriers to factor mobility within countries are needed to account for the evidence.
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