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Regional Dynamics in Japan: A Reexamination of Barro Regressions

Kawagoe, M.—Regional Dynamics in Japan: A Reexamination of Barro Regressions
https://doi.org/10.1006/jjie.1998.0421Get rights and content

Abstract

Cross-section regressions, so-called “Barro regressions,” have been widely used in world and regional income data to test whether convergence takes place. This paper applies alternative methodologies, a time series test and a Markov chain model, to Japanese prefectural data and reexamines the results of J. Barro and X. Sala-i-Martin (1992,J. Japan. Int. Econ.6, 312–346). These methodologies show that the hypothesis of convergence as “catching up” does not hold for Japanese prefectural data. Through analyses similar to those of Barro and Sala-i-Martin, Markov chain models are shown to be more informative than cross-section regressions about the evolution of cross-section data.J. Japan. Int. Econ., March 1999,13(1), pp. 61–72. ECO/CS3, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France.Copyright 1999 Academic Press.

Journal of Economic LiteratureClassification Numbers: C21, C22, C23, E32, E37, O41.

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Cited by (13)

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I owe D. Quah (London School of Economics) a special debt for helpful comments and encouragement. I thank R. Komiya (Aoyama–Gakuin University), A. Yakita (Mie University), and the referees for comments on the earlier versions of this paper and H. Toyama for computational assistance. I thank the Economic Planning Agency and the British Council for giving me an opportunity to study at LSE. The views expressed herein are my own and in no way represent those of the OECD or of the EPA.

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