Income convergence, migration and geography: Distribution analysis of regions in Norway

Empirical evidence about income convergence among regions and countries is inconclusive and it is necessary to clarify the economic and institutional conditions for convergence. We investigate movements in the income distribution among regions in an integrated market with high mobility of labor, capital, knowledge and technology - municipalities and economic regions in Norway. Large and persistent population flows from the periphery towards urban centers characterize the economic development. The convergence towards a narrower unimodal distribution of per capita income is convincing in this homogenous institutional setting. Kernel density functions and finite first order Markov chains are estimated and tested, in particular with respect to the role of migration. Interestingly, migration seems to be unimportant for the convergence process, at odds with the recent emphasis on agglomeration effects and divergence. The population flows to urban centers do not generate growth processes where the income level in cities takes off compared to the periphery. The convergence process is slow, however, and the evolving regional income pattern seems to reflect differences in permanent regional factors

Partial fiscal decentralization and public-sector heterogeneity: Theory and evidence from Norway

This paper provides an empirical test of a principal tenet of fiscal federalism: that spending discretion, when granted to localities, leads to public-sector heterogeneity, with public-good levels adjusting to suit local demands. The test is based on a simple model of partial fiscal decentralization, under which earmarking of central transfers for particular uses is eliminated, allowing funds to be spent according to local tastes. The model predicts that partial decen- tralization generates dispersion in the levels of public services as spending adjusts to local preferences. But the model also yields the more-general prediction that the characteristics of local jurisdictions should play a bigger role in determining the levels of public goods after a decentralization reform than before. Both predictions are confirmed by the paper's empirical results, which show the effects of the 1986 Norwegian reform

Intermediate institutions and technology transfer in developing countries: the case of the construction industry in Ghana

There has been an emerging view that the quality of state institutions can influence technology transfer in host countries. The bulk of such studies have ignored the role of intermediate institutions which bridge government and industry. We compare academic and local expert views of how technology and knowledge (T&K) transfer could be enhanced in the developing world, taking the Ghanaian construction industry as an exemplar. The academic argument that the development of strong intermediate institutions is likely to improve T&K policy and practice is explicated. We then investigate expert perceptions of the industry’s T&K transfer problems and their proposed solutions. Their views confirm, but also develop and nuance academic research by suggesting that certain types of intermediate institutions have a more significant role to play than others