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Regional Convergence in the European Union: Results from a Panel Data Model

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  • Jesus Lopez-Rodriguez

    ()
    (Harvard University and University of A Coruña)

Abstract

This paper evaluates the convergence process for different samples of European Union regions during the period 1982-1999 by using fixed effects panel data regressions. This estimation method allows us to control for unobserved time-invariant heterogeneity in cross-sectional models. The results of growth rates are significantly negatively related to income levels and show that the convergence relationship holds. However when regions are bound to very different steady state positions, convergence to a common income level appears to be impossible.

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File URL: http://www.accessecon.com/pubs/EB/2008/Volume18/EB-08R00001A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 18 (2008)
Issue (Month): 2 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-08r00001

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  1. Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
  2. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
  3. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 664-71, October.
  4. Jean Pisani-Ferry & Damien Neven & Claudine Gouyette, 1994. "European Integration and Regional Growth," Revue Économique, Programme National Persée, vol. 45(3), pages 703-714.
  5. Giannetti, Mariassunta, 2002. "The effects of integration on regional disparities: Convergence, divergence or both?," European Economic Review, Elsevier, vol. 46(3), pages 539-567, March.
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Cited by:
  1. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
  2. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
  3. Josef Novotný, 2010. "Regional Convergence, Divergence and Other Aspects of Distributional Dynamics of European Regions in the Period 1992-2006," Politická ekonomie, University of Economics, Prague, vol. 2010(2), pages 166-185.
  4. Soundararajan, Pushparaj, 2013. "Regional income convergence in India: A Bayesian Spatial Durbin Model approach," MPRA Paper 44744, University Library of Munich, Germany.

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