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Real convergence and regional policy in the European Union: Evidence from 1990s

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Bernhard Herz ()

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Abstract

The paper addresses two problems in the analysis of regional convergence in the European. First, typical convergence studies use data that is only available for some of the regions in the EU. This introduces a selection bias, as the lack of data is likely to be systematically linked to the regional income level. Secondly, the estimation takes the EU regional policy explicitly into account. The empirical evidence points to conditional convergence, with a relatively fast pace of convergence compared to other studies. The estimations indicate that regional differences in R&D account for some income variation between EU regions. EU regional policy does not seem to affect regional growth in the EU.

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Article provided by Department of Economics, Economics I, Bayreuth University in its journal Macroeconomics.

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  2. Bernhard Herz & Werner Roeger, 1995. "Economic Growth and Convergence in Germany," Macroeconomics, Department of Economics, Economics I, Bayreuth University, vol. 131(1), pages 132-143.
  3. Raffaele Paci & Francesco Pigliaru, 2001. "Technological Diffusion, Spatial Spillovers And Regional Convergence In Europe," Working Paper CRENoS 200101, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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  5. Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August. [Downloadable!] (restricted)
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  7. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
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  8. ?gel de la Fuente, . "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  9. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  10. De Long, J Bradford, 1988. "Productivity Growth, Convergence, and Welfare: Comment," American Economic Review, American Economic Association, vol. 78(5), pages 1138-54, December. [Downloadable!] (restricted)
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  11. Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Blackwell Publishing, vol. 21(6), pages 757-774, 08. [Downloadable!] (restricted)
  12. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March. [Downloadable!] (restricted)
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  13. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May. [Downloadable!] (restricted)
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