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Growth and Convergence-Divergence Trends in the European Union

Author

Listed:
  • George Petrakos
  • Ageliki Anagnostou
  • Panagiotis Artelaris
  • Yannis Psycharis

Abstract

This paper proposes a new framework for analysis of the determinants of regional income inequality. Using NUTS III data for the EU-27 countries in the period 1995-2004, it provides evidence that regional inequalities in the EU countries follow a pro-cyclical pattern, while spread effects appear only at advanced levels of development. Market-driven processes are found to increase inequalities, while public policies tend partly to off-set the cumulative effects of growth on space. The paper also provides evidence on the impact of EU integration, as well as the impact of structural change on regional inequalities. Its findings may have significant implications for theory and policy. Keywords: regional inequalities, convergence, growth, development JEL classification codes: R10, R11, R58

Suggested Citation

  • George Petrakos & Ageliki Anagnostou & Panagiotis Artelaris & Yannis Psycharis, 2008. "Growth and Convergence-Divergence Trends in the European Union," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(Suppl. 2), pages 9-28.
    • Handle: RePEc:fan:scresc:v:html10.3280/scre2008-sup002
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    Citations

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    Cited by:

    1. Mihaela Simionescu, 2014. "The Beta-Convergence Analysis And Regional Disparites In Eu-28," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(2 (June)), pages 169-178.
    2. Jaroslav Danhel & Eva Duchackova, 2014. "Behavioural and Empirical Topics for Discussion on Economic Science Paradigms," ACTA VSFS, University of Finance and Administration, vol. 8(2), pages 100-112.
    3. Tomas Konecny, 2014. "Linkages between the Financial and Real Sectors across Interest Rate Regimes: The Case of the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 8(2), pages 113-131.
    4. Barbara Pertold-Gebicka, 2014. "Job Market Polarization and Employment Protection in Europe," ACTA VSFS, University of Finance and Administration, vol. 8(2), pages 133-148.
    5. Jan Zapal, 2014. "Consumption Tax Incidence: Evidence from Natural Experiment in the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 8(2), pages 149-166.

    More about this item

    Keywords

    regional inequalities; convergence; growth; development jel classification codes: r10; r11; r58;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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