Regional Convergence in Austria

Abstract: This paper examines growth and dispersion of output per capita across Austrian regions and districts. We find only weak support for the convergence hypothesis. Data analysis of the Austrian regions find no evidence for cointegration between regional output and national output. The cross-sectional approach shows no significant relationship between average growth rates and level of regional per capita GDP in 1961. Similar results are found for the Austrian districts. The rate of convergence ß is about one percent a year and indicate a - if any - convergence pattern with a very slow pace.;