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Economic Integration and Convergence: A Second Decomposition Method

Published online by Cambridge University Press:  03 March 2009

Sumner J. La Croix
Sumner J. La Croix
Affiliation:
Sumner J. La Croix is Professor, Department of Economics, University of Hawaii, Honolulu, Hawaii 96822
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Abstract

In this Journal, Sukkoo Kim investigates the sources of income convergence and divergence across regions in the United States. Kim argues that there are two sources of income convergence in regional economies linked by trade: convergence in regional wage rates and convergence in regional industry mixes. Using U.S. regional data on industry mix and worker income by industry, Kim decomposes differences in regional incomes into industry wage and industry-mix components. From his decompositions, Kim concludes that changing regional industrial structures “played an important role in causing the divergence and convergence of U.S. regional income per capita” in both the nineteenth and twentieth centuries..

Type
Notes and Discussion
Information
The Journal of Economic History , Volume 59 , Issue 3 , September 1999 , pp. 773 - 778
Copyright
Copyright © The Economic History Association 1999

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References

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