Growth and Convergence Across the U.S.: Evidence from County-Level Data
Matthew John Higgins
Georgia Institute of Technology - Scheller College of Business; National Bureau of Economic Research (NBER)
Bar-Ilan University - Department of Economics; Emory University - Department of Economics; Rimini Center for Economic Analysis
Andrew T. Young
West Virginia University - College of Business and Economics
Review of Economics and Statistics, 2006
We use U.S. county data (3,058 observations) and 41 conditioning variables to study growth and convergence. Using OLS and 3SLS-IV we report on the full sample and metro, non-metro, and 5 regional samples: (1) OLS yields convergence rates around 2 percent; 3SLS yields 6-8 percent; (2) convergence rates vary (e.g., the Southern rate is 2.5 times the Northeastern rate); (3) federal, state and local government negatively correlates with growth; (4) the relationship between educational attainment and growth is nonlinear; and (5) finance, insurance & real estate industry and entertainment industry positively correlates with growth while education employment negatively correlates.
Number of Pages in PDF File: 54
Keywords: Economic Growth, Conditional Convergence, County-Level Data
JEL Classification: O40, O11, O18, O51, R11, H50, H70
Date posted: October 3, 2005
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