Economic Performance across the UK Regions: Convergence or Divergence?

The authors examine the evolution of UK regional gross domestic product (GDP) per capita since the mid-1970s, with particular emphasis on the degree of divergence or convergence of real GDP per head. They investigate three types of convergence, known as sigma convergence, beta convergence, and conditional beta convergence. They find little evidence of a diminution in the differences in the levels of regional incomes over the sample period, although the standard deviation in regional incomes docs vary over time. There is also some limited evidence of mobility of regions, indicative of beta convergence.