Regional factor price convergence across four major European countries

Webber, Don J.; White, Paul

Abstract

Neo-classical growth models predict that the free movement of goods and factors will result in the spatial convergence of output and an ensuing convergence of factor prices. Based on distribution free statistics, this paper presents an empirical examination of average factor prices for labour across 58 regions of the EU over the period 1980-94. Using methods of concordance and discordance that identify the presence of switching, persistence, stratification and convergence between individual and groups of regions, our results suggest swings in the trend between factor price convergence and factor price divergence, while switching, persistence and stratification characterize the sample's evolution.

• Journal Article Type: Article
• Publication Date: Nov 1, 2003
• Journal: Regional Studies
• Print ISSN: 0034-3404
• Electronic ISSN: 1360-0591
• Publisher: Taylor & Francis (Routledge)
• Peer Reviewed: Peer Reviewed
• Volume: 37
• Issue: 8
• Pages: 773-782
• DOI: https://doi.org/10.1080/0034340032000128703
• Keywords: regional factor price convergence, Europe
• Public URL: https://uwe-repository.worktribe.com/output/1075104
• Publisher URL: http://dx.doi.org/10.1080/0034340032000128703