Sub-regional disparities in Britain: convergence, asymmetries and spatial dependence

Regional outcomes in Britain have exhibited strong signs of divergence and asymmetries on the basis of a North-South divide for over twenty years. This paper examines the nature of these evolutions within a spatial econometrics framework, integrating the analysis of neoclassical β-convergence with that of spatial dependence. The analysis illuminates the dynamic interdependencies that connect the local economies of Britain and provides useful insights for the conduct of regional policy in the country and the goal of regional equalisation of growth potentials. JEL codes: J31, R12, R15, R58