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Convergence Across Countries And Regions: Theory And Empirics

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de la Fuente, Angel

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Abstract

This paper surveys the recent literature on convergence across countries and regions. We discuss the main convergence and divergence mechanisms identified in the literature and develop a simple model that illustrates their implications for income dynamics. We then review the existing empirical evidence and discuss its theoretical implications. Early optimism concerning the ability of a human capital-augmented neoclassical model to explain productivity differences across economies has been questioned on the basis of more recent contributions that make use of panel data techniques and obtain theoretically implausible results. Some recent research in this area tries to reconcile these findings with sensible theoretical models by exploring the role of alternative convergence mechanisms and the possible shortcomings of panel data techniques for convergence analysis.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2465.

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Date of creation: May 2000
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Handle: RePEc:cpr:ceprdp:2465

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Keywords: Convergence Growth

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Floro Ernesto Caroleo & Gianluigi Coppola, 2006. "The Impact of the Institutions on Regional Unemployment Disparities in Europe," Discussion Papers 4_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy. [Downloadable!]
  2. Mari Carmen Puigcerver-Penalver, 2007. "The Impact of Structural Funds Policy on European Regions' Growth : A Theoretical and Empirical Approach," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 179 - End, September. [Downloadable!]
  3. Floro Ernesto Caroleo & Gianluigi Coppola, 2005. "The impact of institutions on Regional unemployment disparities," ERSA conference papers ersa05p758, European Regional Science Association. [Downloadable!]
  4. Daniele, Vittorio, 2007. "Sources of growth and convergence among Italian regions 1980-2004," MPRA Paper 4994, University Library of Munich, Germany, revised 02 Aug 2007. [Downloadable!]
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  6. Kari E.O. Alho & Ville Kaitila & Mika Widgrén, 2004. "Speed of Convergence and Relocation: New EU Member Countries Catching up with the Old," Discussion Papers 963, The Research Institute of the Finnish Economy. [Downloadable!]
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  7. Leone Leonida, . "On the Effects of Industrialization Processes on Growth and Convergence Dynamics: Evidence from Italian Regions," Discussion Papers 04/15, Department of Economics, University of York. [Downloadable!]
  8. Christiane Krieger-Boden, 2002. "European Integration and the Case for Compensatory Regional Policy," Kiel Working Papers 1135, Kiel Institute for the World Economy. [Downloadable!]
  9. Vicente Royuela & Manuel Artís, 2006. "Convergence analysis in terms of quality of life in the urban systems of the Barcelona province, 1991--2000," Regional Studies, Taylor and Francis Journals, vol. 40(5), pages 485-492, July. [Downloadable!] (restricted)
  10. Laurens Cherchye & Wim Moesen, 2003. "Institutional Infrastructure and Economic Performance: Levels versus Catching Up and Frontier Shifts," Public Economics Working Paper Series ces0314, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
  11. Paola Barrientos, 2007. "Theory, History and Evidence of Economic Convergence in Latin America," Development Research Working Paper Series 13/2007, Institute for Advanced Development Studies. [Downloadable!]
  12. José Manuel González-Páramo & Diego Martínez López, . "Public Investment and Convergence in the Spanish Regions," Studies on the Spanish Economy 112, FEDEA. [Downloadable!]
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  14. Bernhard Herz, 2002. "Real convergence and regional policy in the European Union: Evidence from 1990s," Macroeconomics con_2002-11, Department of Economics, Economics I, Bayreuth University. [Downloadable!]
  15. Mari-Carmen Puigcerver-Pe\UNICODE{0xf1}alver, 2004. "The Impact of Structural Funds Policy on European Regions Growth. A Theoretical and Empirical Approach," Econometric Society 2004 Latin American Meetings 141, Econometric Society. [Downloadable!]
  16. Ismael Sanz & Francisco J. Velázquez, 2001. "The evolution and convergence of the government expenditure composition in the OECD countries: an analysis of the functional distribution," Public Economics 0111005, EconWPA. [Downloadable!]
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  17. Bartzokas, Anthony, 2001. "Financial Markets and Technological Change: Patterns of Technological and Financial Decisions by Manufacturing Firms in Southern Europe," Discussion Papers 4, United Nations University, Institute for New Technologies. [Downloadable!]
  18. Kalyoncu, Kahraman & Kalyoncu, Huseyin, 2002. "An Empirical Work On Catch Up By The Diffusion Of Technology," MPRA Paper 4423, University Library of Munich, Germany. [Downloadable!]
  19. Th. Azomahou & J. El Ouardighi & Ph. Nguyen Van & Th. Kim Cuong Pham, 2004. "Semiparametric Analysis of the Regional Convergence Process," THEMA Working Papers 2004-22, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  20. Sarajevs, Vadims, 2001. "Convergence of European Transition Economies and the EU: What Do the Data Show?," BOFIT Discussion Papers 13/2001, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
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