Convergence of EU-Regions. A Literature Report

The main focus of convergence studies surrounds the question ofwhether poor economies catch up to wealthier economies over time. The regionalconvergence process in Europe has generated considerable interest in recent years.Due to financial straits regional convergence is a central question, since importantfunds aim at diminishing disparities. There are many studies published recently dealingwith this issue using different empirical approaches. The β-convergence framework,which was introduced by Barro and Sala-i-Martin, is, for instance, an oftenused approach. This paper provides a critical review of the used approaches and summarisesthe results. A special problem is that authors refer to different periods andMember State groups (EU-9, EU-15, etc.). Altogether it can be stated that most modelsfind a slow convergence process. In particular, the increase of regional inequalitiescaused by the enlargement of the EU with the New Member States from Centraland Eastern Europe explains the existence of convergence clubs.