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Heading for Divergence? Regional Growth in Europe Reconsidered

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  • Jan Fagerberg
  • Bart Verspagen

Abstract

This article analyses regional growth in the European Union (EU) in the postwar period. We examine the levels and growth of per capita GDP for a sample of 70 regions, covering six of the EU Member States. We find that after a slow, but steady reduction of differences in GDP per capita across European regions during most of the post-war period, there are now some signs of a reversal in this trend. This does not imply that differences in levels of productivity and income across European regions are now reduced to a negligible level. Rather, the explanation is that other variables, notably R&D effort, investment support from the EU, the structure of GDP and differences in unemployment have had a diverging impact. We also find some support for the idea of a 'Europe at different speeds', with at least three different 'growth clubs' characterized by different dynamics, productivity and unemployment levels. Copyright 1996 BPL.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Common Market Studies.

Volume (Year): 34 (1996)
Issue (Month): 3 (09)
Pages: 431-448
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Handle: RePEc:bla:jcmkts:v:34:y:1996:i:3:p:431-448

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References

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  1. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
  2. Gouyette, Claudine & Neven, Damien J, 1994. "Regional Convergence in the European Community," CEPR Discussion Papers 914, C.E.P.R. Discussion Papers.
  3. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
  4. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  5. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
  6. Verspagen, Bart, 1991. "A new empirical approach to catching up or falling behind," Open Access publications from Maastricht University urn:nbn:nl:ui:27-18004, Maastricht University.
  7. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
  8. Dosi, Giovanni & Soete, Luc, 1988. "Technical change and international trade," Open Access publications from Maastricht University urn:nbn:nl:ui:27-6339, Maastricht University.
  9. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
  10. Steven N. Durlauf & Paul A. Johnson, 1992. "Local Versus Global Convergence Across National Economies," NBER Working Papers 3996, National Bureau of Economic Research, Inc.
  11. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  12. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  13. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
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