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Convergence of Regions from 23 EU Member States

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Author Info
Hans-Friedrich Eckey () (Department of Economics, University of Kassel)
Thomas Döring () (Department of Economics, University of Kassel)
Matthias Türck () (Department of Economics, University of Kassel)
Abstract

Convergence of EU regions is an often examined research question. However, there are no studies available which include in their analysis the New Member States from the former Eastern Bloc. We estimate several models of absolute convergence and of conditional convergence taking into account the different initial conditions of the regions from each country. First, we calculate convergence models with equal convergence rates of every region (stationary approaches). We prove a convergence process with nearly all models between 1995-2003. Only the spatial filtering approach in combination with the inclusion of country specific dummy variables shows a significant divergent development. Second, we calculate a geographically weighted regression (GWR) approach, which uses instationary regression coefficients. This model gives evidence for a convergence of most regions. However, some regions seem to move away from their steady state.

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Paper provided by University of Kassel, Institute of Economics in its series Discussion Papers in Economics with number 86/06.

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Length: 31 pages
Date of creation: Aug 2006
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Handle: RePEc:kas:wpaper:2006-86

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Related research
Keywords: Regional Convergence; Spatial Econometrics; Europe;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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