Abstract:
This paper uses detailed industry level time-series data for the UK regions which suggests that convergence (at least in terms of output-per-employee) was not occurring during the period 1968-92. Based on testing for unit roots, it is found that in a majority of industries and regions growth was divergent, and consequently there is little empirical support for the neoclassical "long-run catch up" model. Copyright 1999 by Scottish Economic Society.