Changing the economic landscape: The phenomenon of regional inversion in the US manufacturing sector

Luis Lanaspa (), Antonio Montañés, Luisa Irene Olloqui-Cuartero and Fernando Sanz-Gracia
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Luisa Irene Olloqui-Cuartero: Department of Economics, University of Zaragoza, Gran Via 2, 50005, Zaragoza, Spain
Fernando Sanz-Gracia: Department of Economics, University of Zaragoza, Gran Via 2, 50005, Zaragoza, Spain

Papers in Regional Science, 2002, vol. 81, issue 4, 461-482

Abstract: Regional inversion is the name given to the phenomenon whereby the traditional industrial areas of certain countries lose their weight in favor of what were formerly peripheral zones. Against this background our first objective is to offer a formal and rigorous definition of the concept of regional inversion from an econometric standpoint. To that end we relate such a process with the long-run concepts of convergence and catching-up. Secondly, we test this definition through the use of unit root statistics and apply these to demonstrate the presence of this phenomenon in some of the US two-digit SIC industries.

Keywords: Regional Inversion; US manufacturing sector; unit root tests; structural breaks (search for similar items in EconPapers)
JEL-codes: C22 L60 R23 (search for similar items in EconPapers)
Date: 2002-10-21
Note: Received: 4 December 2000
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Citations: View citations in EconPapers (3)

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