Manufacturing industries in Northern Ireland and Great Britain: was there convergence during the 1949-92 period?

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This paper uses detailed industry-level data for the UK regions which, based on the standard cross-sectional regression model, suggests that 'strong' convergence was occurring during the period 1963-92, even though plotting these data and considering their variation over time would tend to suggest divergence rather than convergence has dominated. However, since there are several, rather fundamental drawbacks associated with the cross-sectional approach, a long time-series of data for Northern Ireland and Great Britain is used to test for convergence directly, based on testing for unit roots. The outcome is that more than half of the Northern Ireland industries considered experienced 'catch-up', while the rest (with the exception of the Textiles sector) experienced long-run convergence, i.e. they tracked their counterparts in Great Britain over the period considered.

Document Type: Research Article


Publication date: December 1, 1999

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