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Regional Convergence from Local Isolated Actions: II Conditioning

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  • Danny Quah

Abstract

This paper develops an empirical procedure to assess alternative explanations for differing patterns of growth and convergence. It finds that positive spatial spillovers account for a large part of inequality dynamics across Europe as a whole, the Cohesion economies (Greece, [Ireland]. Spain. Portugal), and selected non-Cohesion EU member states. The analysis shows that when the Cohesion economies see their incomes increase and experience higher tendencies towards greater equality, so will the non-Cohesion economies of France, Italy and the UK experience similar outcomes: moreover it is the relatively poor non-Cohesion economies that will benefit most from improving conditions in the Cohesion economies.

Suggested Citation

  • Danny Quah, 1997. "Regional Convergence from Local Isolated Actions: II Conditioning," CEP Discussion Papers dp0379, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0379
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    Cited by:

    1. Peiró-Palomino, Jesús & Picazo-Tadeo, Andrés J. & Tortosa-Ausina, Emili, 2021. "Measuring well-being in Colombian departments. The role of geography and demography," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    2. Lionel Artige & Rosella Nicolini, 2006. "Labor productivity in Europe: Evidence from a sample of regions," UFAE and IAE Working Papers 661.06, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Cristina Suárez & Justo Jorge, 2010. "Efficiency convergence processes and effects of regulation in the nonspecialized retail sector in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 573-597, June.
    4. Batóg Barbara & Batóg Jacek & Mojsiewicz Magdalena, 2009. "Application of Kernel Estimation in Analysis of Labour Productivity of the Largest Polish Firms in 2004-2008," Folia Oeconomica Stetinensia, Sciendo, vol. 8(1), pages 126-139, January.
    5. Ana Lamo, 2000. "On convergence empirics: same evidence for Spanish regions," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 681-707, September.
    6. Tortosa-Ausina, Emili, 2004. "An alternative conditioning scheme to explain efficiency differentials in banking," Economics Letters, Elsevier, vol. 82(2), pages 147-155, February.
    7. Laura De Dominicis, 2014. "Inequality and Growth in European Regions: Towards a Place-based Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 120-141, June.
    8. Ross, Matthias, 2001. "Transfers, agglomeration and German unification," HWWA Discussion Papers 144, Hamburg Institute of International Economics (HWWA).
    9. Rosella Nicolini, 2011. "Labour productivity in Spain: 1977-2002," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 465-485.
    10. Bailey, David & de Propris, Lisa, 2000. "Regional Policy, Convergence And Theories Of Justice," ERSA conference papers ersa00p418, European Regional Science Association.
    11. Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo & Emili Tortosa-Ausina, 2020. "The Geography of Well-being in Colombia," Working Papers 2020/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    12. Ross, Matthias, 2001. "Transfers, Agglomeration and German Unification," Discussion Paper Series 26161, Hamburg Institute of International Economics.
    13. B. Gill de Albornoz Noguer & M. Illueca Munoz, 2004. "Comparing abnormal accruals models: a non-parametric approach," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1455-1460.
    14. Tortosa-Ausina, Emili, 2003. "Nontraditional activities and bank efficiency revisited: a distributional analysis for Spanish financial institutions," Journal of Economics and Business, Elsevier, vol. 55(4), pages 371-395.

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