ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2011
  • © Brno University of Technology, 2002-2011
  • © University of Latvia, 2002-2011
Kuriame Lietuvos ateitį
Income Convergence of The Counties: The Case of Mississippi
Shahdad Naghshpour, Bruno S. Sergi

ABSTRACT. The paper deals with income convergence issue, related to external shocks and income per capita, in the Mississippi County, the USA. The legalization of casinos in Mississippi in 1992 provides a natural experiment to examine the effect of external shocks on the per capita income and, hence, on the issue of convergence or divergence. A change in per capita of some Mississippi counties does not change the convergence of all the counties in the state. If the affected counties were all at the bottom of the income ladder, and their income increased sufficiently enough, then both β-convergence and σ-convergence can occur. Otherwise, the outcome is not predictable a priori.

KEYWORDS: income convergence, external shock, measurement of economic growth, casino business, USA.

JEL classification: O47, O50, L83, P52.

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Scholarly papers Transformations in Business & Economics
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