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

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Author Info
Jesus Lopez-Rodriguez () (Harvard University and University of A Coruña)

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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://economicsbulletin.vanderbilt.edu/2008/volume18/EB-08R00001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 18 (2008)
Issue (Month): 2 ()
Pages: 1-7
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Handle: RePEc:ebl:ecbull:v:18:y:2008:i:2:p:1-7

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Related research
Keywords: Convergence; Fixed Effects Panel Data; Economic Growth; European Union;

Find related papers by JEL classification:
R0 - Urban, Rural, and Regional Economics - - General
N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations

References listed on IDEAS
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  1. 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(1991-1), pages 107-182. [Downloadable!]
    Other versions:
  2. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Blackwell Publishing, vol. 34(3), pages 431-448, 09. [Downloadable!] (restricted)
  3. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Oxford University Press, vol. 33(4), pages 664-71, October.
  4. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
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