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Convergence Across the EU Regions: Economic Composition and Structural Transformation

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  • Maria Sassi

Abstract

This paper refers to 1995–2006 and analyzes the role and sources of within- and between-sectors convergence in the context of the economic catching-up process across the European Union regions. The perspective adopted here overcomes the prevailing theoretical and empirical contributions referred to as the one-sector economic growth model by Solow that neglects the implications of economic composition and structural transformation on regional aggregate growth and catching-up. Further, a comparison between the results from the fixed effects panel data model and cross-regions ordinary least square estimates allow consideration of the technological differences in the economic and sectoral speeds of convergence. The growth-accounting approach integrates these results and underlines the role of structural composition and change on the process of economic and between-sectors catching-up. Copyright International Atlantic Economic Society 2011

Suggested Citation

  • Maria Sassi, 2011. "Convergence Across the EU Regions: Economic Composition and Structural Transformation," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(1), pages 101-115, February.
    • Handle: RePEc:kap:iaecre:v:17:y:2011:i:1:p:101-115:10.1007/s11294-010-9286-8
    DOI: 10.1007/s11294-010-9286-8
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    Cited by:

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    3. Hajek, Petr & Henriques, Roberto & Hajkova, Veronika, 2014. "Visualising components of regional innovation systems using self-organizing maps—Evidence from European regions," Technological Forecasting and Social Change, Elsevier, vol. 84(C), pages 197-214.

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    More about this item

    Keywords

    Regional convergence; Sources of convergence; Panel approach; C22; C23; O41; O47;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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