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Abstract

This paper applies a common empirical methodology in testing for convergence of per capita incomes across the counties in North and South Carolina. Decennial census data on per capita income for the 46 counties of South Carolina and the 100 counties of North Carolina are used to test for two types of income convergence over the 1959-2010 time span. The results indicate that both beta and sigma convergence occurred across the counties for the full period, but there were sub-periods (the 1980s, and the 2000s) over which neither measure of convergence was evident. In fact, measured by the beta method, there was statistically significant divergence of per capita incomes across both North and South Carolina counties in the decade of the 1980s. In general, there was great similarity in convergence measured by either method across the counties in these two states.

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