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European Region Types in EU-25

Author

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  • Christine M. Aumayr

Abstract

In this paper a categorization of 1,212 European NUTS 3 regions is conducted by means of factor and cluster analysis according to economic structure and spatial characteristics. Subsequently the hypothesis is tested that these region types do explain differences in level and growth of regional income. The resulting 14 region types (10 non-urban and 4 urban) do show differences in regional income per capita and some of them are expected to converge to different steady state levels. In particular, region types with low employment rates obtain lower per capita income on average than others, while those with productivity differentials in favour of industry obtain higher GDP p.c. when judged against region types comparable in their degree of accessibility. In estimating regressions on conditional beta-convergence, the inclusion of national dummies shows a reduced speed of convergence (in the total and the western sample) and even divergence in the sample of (former communist) new member states, while the additional inclusion of region type dummies points again to a still low but higher speed of convergence. The estimates indicate significant lower steady state incomes in the peripheral agrarian regions, peripheral industrial regions with a lower productivity differential in favour of industry, peripheral tertiary regions and both types of central regions with low employment rates. A higher steady state income is estimated for metropolitan areas and big agglomerations.

Suggested Citation

  • Christine M. Aumayr, 2007. "European Region Types in EU-25," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 109-147, September.
  • Handle: RePEc:liu:liucej:v:4:y:2007:i:2:p:109-147
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    File URL: https://ejce.liuc.it/18242979200702/182429792007040202.pdf
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    Citations

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    Cited by:

    1. Corinna Kleinert & Alexander Vosseler & Uwe Blien, 2018. "Classifying vocational training markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 31-48, July.
    2. Peter Huber, 2009. "Regional Labour Market Disparities in an Enlarged European Union," Palgrave Macmillan Books, in: Paul Blokker & Bruno Dallago (ed.), Regional Diversity and Local Development in the New Member States, chapter 5, pages 122-165, Palgrave Macmillan.
    3. Aldona Standar & Agnieszka Kozera, 2019. "The Role of Local Finance in Overcoming Socioeconomic Inequalities in Polish Rural Areas," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    4. Stéphanie Lapierre & Marcelin Joanis, 2016. "Établir des groupes de régions économiques comparables au Canada : une analyse par grappes," CIRANO Working Papers 2016s-52, CIRANO.
    5. Marcello Signorelli & Enrico Marelli, 2007. "Institutional change, regional features and aggregate performance in eight EU’s transition countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 37/2007, Università di Perugia, Dipartimento Economia.
    6. Mariasole Bannò & Valentina Morandi & Celeste Amorim Varum, 2013. "Public policy for innovation and internationalization: are they worth it?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(10), pages 927-930, July.
    7. Knut Koschatzky & Elisabeth Baier, 2012. "The Impact of Regional Institutional Characteristics on the Location of MNCs – a European Perspective," Chapters, in: Martin Heidenreich (ed.), Innovation and Institutional Embeddedness of Multinational Companies, chapter 9, Edward Elgar Publishing.

    More about this item

    Keywords

    Region Types; Cluster Analysis; European Regions; Convergence;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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