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Changing the economic landscape: The phenomenon of regional inversion in the US manufacturing sector *
Author(s) -
LanaspaSantolaria Luis Fernando,
Montañés Antonio,
OlloquiCuartero Luisa Irene,
SanzGracia Fernando
Publication year - 2002
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.2002.tb01244.x
Subject(s) - phenomenon , inversion (geology) , unit root , economic geography , econometrics , root cause , economics , geography , operations management , epistemology , geology , philosophy , seismology , tectonics
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.