In many applications common in testing for convergence the number of cross-sectional units is large and the number of time periods are few. In these situations tests which are founded upon an omnibus null hypothesis are characterised by a number of problems. In this paper we consider a broad class of tests of convergence based on multivariate time series and panel data methodologies, and track ...

This paper surveys the literature on regional inequality in contemporary China. It reviews the trend of convergence or divergence of real GDP or income across different regions in China since 1952, and examines the degree of regional inequality using different measurements. It then discusses various factors that may cause the increasing regional inequality and the empirical evidences correspond...

This paper surveys the recent literature on convergence across countries and regions. We discuss the main convergence and divergence mechanisms identified in the literature and develop a simple model that illustrates their implications for income dynamics. We then review the existing empirical evidence and discuss its theoretical implications. Early optimism concerning the ability of a human ca...

Is there a 'new' economic geography of Information Technologies driven industries? Does the fast growth of the Digital Economy shape new regional specialization and industrial concentration? How do the different theories of agglomeration externalities contribute to the understanding of clustering dynamics in IT industries? This paper uses geographical data from 1992 and 1997 Census to examine s...

Questions surrounding regional economic convergence have commanded a great deal of recent attention in economics literature. As in other recent cases in the social sciences, the application of spatially explicit methods of data analysis to the convergence question has yielded important insights on regional economic growth. By contrast, the literature on regional income inequality, although some...

This paper explores the relationship between fiscal federalism, understood as institutionalized regional economic self-rule, and convergence in regional per capita incomes. The principal economic argument against fiscal federalism is that, unless paired with generous equalization grants, it will enhance regional inequalities by reducing inter-regional redistribution. Does the evidence support t...