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EMU versus the regions? Regional convergence and divergence in Euroland

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Author Info
Ron Martin

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Abstract

There is currently considerable interest in and debate over the impact of increasing European economic and monetary integration (EMU) on the regions of the EU. Opinion is sharply divided over whether EMU is leading to regional economic convergence or regional economic divergence. This paper examines the theoretical arguments and empirical evidence for these opposing views, and presents some additional analysis of patterns of regional productivity trends and employment growth over the period 1975-98. The picture that emerges is a complex one: whilst worker productivity shows only very weak convergence across the EU regions (a process which halted altogether after the mid-1980s), regional employment growth has been sharply divergent. Although there is little support for the claim that EMU will lead to regional convergence, these findings suggest that until much more detailed investigation of the specific impacts on particular types of region is undertaken, the regional implications of EMU will remain a contentious issue. Copyright 2001 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 1 (2001)
Issue (Month): 1 (January)
Pages: 51-80
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Handle: RePEc:oup:jecgeo:v:1:y:2001:i:1:p:51-80

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  1. Georgios Fotopoulos, 2005. "Twin - Peaks in E.U. Regional Productivity Dynamics: a nonparametric analysis," Papers on Entrepreneurship, Growth and Public Policy 2005-28, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  2. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association. [Downloadable!]
  3. Kurt Geppert & Michael Happich & Andreas Stephan, 2004. "Regional disparities in the European Union: Convergence and Agglomeration," ERSA conference papers ersa04p219, European Regional Science Association. [Downloadable!]
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  4. Nikos Christodoulakis, 2009. "Ten Years of EMU: convergence, divergence and new policy priorities," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 22, Hellenic Observatory, LSE. [Downloadable!]
  5. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2008. "Convergence Patterns in the World Economy: Exploring the Non-Linearity Hypothesis," Papers DYNREG32, Economic and Social Research Institute (ESRI). [Downloadable!]
  6. Kurt Geppert & Martin Gornig & Andreas Stephan, 2003. "Productivity Differences in the European Union: National, Regional and Spatial Effects," Discussion Papers of DIW Berlin 383, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  7. Ron Martin & Peter Tyler, 2006. "Evaluating the impact of the structural funds on objective 1 regions: An exploratory discussion," Regional Studies, Taylor and Francis Journals, vol. 40(2), pages 201-210, April. [Downloadable!] (restricted)
  8. Joeri Gorter & Albert Van der Horst, 2005. "New Economic Geography, Empirics, and Regional Policy," ERSA conference papers ersa05p236, European Regional Science Association. [Downloadable!]
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  9. Jose Corpataux & Olivier Crevoisier & Alain Thierstein, 2002. "Exchange Rate and Regional Divergences: The Swiss Case," Regional Studies, Taylor and Francis Journals, vol. 36(6), pages 611-626, August. [Downloadable!] (restricted)
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  10. Kurt Geppert & Martin Gornig & Andreas Stephan, 2003. "Regional productivity differences in the European Union - Theoretical predictions and empirical evidence," ERSA conference papers ersa03p171, European Regional Science Association. [Downloadable!]
  11. Baylis, Kathy & Garduno-Rivera, Rafael & Piras, Gianfranco, 2009. "The distributional effects of NAFTA in Mexico: evidence from a panel of municipalities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49463, Agricultural and Applied Economics Association. [Downloadable!]
  12. Michael Beenstock & Daniel Felsenstein, 2003. "Decomposing the Dynamics of Regional Earnings Disparities in Israel," ERSA conference papers ersa03p90, European Regional Science Association. [Downloadable!]
  13. Hans-Friedrich Eckey & Matthias Türck, 2006. "Convergence of EU-Regions. A Literature Report," Discussion Papers in Economics 80/06, University of Kassel, Institute of Economics. [Downloadable!]
  14. Nicolas Debarsy & Cem Ertur, 2006. "The European Enlargement Process and Regional Convergence Revisited: Spatial Effects Still Matter," ERSA conference papers ersa06p198, European Regional Science Association. [Downloadable!]
  15. Stefano Schiavo, 2005. "Financial integration, GDP correlation and the endogeneity of optimum currency areas," Working Papers 25, Università di Verona, Dipartimento di Scienze economiche. [Downloadable!]
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  16. Gabriele Tondl & Harald Badinger & Werner Müller, 2003. "Regional convergence in the European Union (1985-1999). A spatial dynamic panel analysis," ERSA conference papers ersa03p455, European Regional Science Association. [Downloadable!]
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  17. Corrado, L. & Martin, R. & Weeks, M., 2004. "Identifying and Interpreting Convergence Clusters Across Europe," Cambridge Working Papers in Economics 0414, Faculty of Economics, University of Cambridge. [Downloadable!]
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  18. Hans-Friedrich Eckey & Thomas Döring & Matthias Türck, 2006. "Convergence of Regions from 23 EU Member States," Discussion Papers in Economics 86/06, University of Kassel, Institute of Economics. [Downloadable!]
  19. José Miguel Albert & Jorge Mateu & Vicente Orts, 2007. "Distribución Espacial De La Actividad Económica En La Union Europea," Working Papers. Serie EC 2007-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  20. Carlos Rodríguez-Fuentes & Sheila Dow, 2003. "EMU and the Regional Impact of Monetary Policy," Regional Studies, Taylor and Francis Journals, vol. 37(9), pages 969-980, December. [Downloadable!] (restricted)
  21. Nicholas Vasilakos & Nikolay Zubanov, 2009. "Income Convergence and R&D Intensity in OECD Manufacturing Industries: A Panel Study," Discussion Papers 09-09, Department of Economics, University of Birmingham. [Downloadable!]
  22. Steven Brakman & Harry Garretsen, 2003. "Rethinking the "New' Geographical Economics," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 637-648, August. [Downloadable!] (restricted)
  23. Francis J. Greene & Kevin F. Mole, 2004. "Tracking Euro preparations amongst UK SMEs," Applied Economics, Taylor and Francis Journals, vol. 36(14), pages 1537-1546, August. [Downloadable!] (restricted)
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