Relative economic performance in Finland: Regional convergence, 1934-1993

This paper analyses the convergence behaviour of the 88 Finnish subregions from 1934 to 1993 by examining the development of relative income levels. Convergence was studied both for the whole 59-year period as well as for two 30-year and three 10-year sub-periods. Convergence was found across the subregions. Moreover, convergence was found to be nonlinear, in that during growth periods the poorer subregions catch up with the richest one at a rate which is faster the smaller their initial income level. Catching up was found to be stronger from 1964 onwards than from 1934 to 1964. No inferior convergence club was found.