Capital Deepening and Regional Inequality: An Empirical Analysis

Citation:

M., Beeenstock, Felsenstein D., and Benzeev N. 2011. “Capital Deepening and Regional Inequality: An Empirical Analysis”. Annals of Regional Science 47(3):599-617. Retrieved (http://link.springer.com/article/10.1007/s00168-010-0397-1).
Capital Deepening and Regional Inequality: An Empirical Analysis

Abstract:

We present a simple reproducible methodology for constructing regional capital stock data, which we apply to Israel. We find that capital deepening has been sigma-convergent since 1985. This process is “inverted” since capital stocks and capital–labor ratios in the richer center have been catching-up with their counterparts in the poorer periphery. We explain this phenomenon in terms of fundamental changes in regional policy. Despite this, regional wages have not been sigma-convergent because other wage determinants have been sigma-divergent.

Publisher's Version

Last updated on 03/16/2022