Economic Integration in Europe and Income Divergence over EU Regions (1995 â€“ 2006)
AbstractThis paper tests the question whether the integration process in the EU has contributed to the often-observed growing dispersion of income over the regions of the EU, in the presence of convergence between the member states. We do this by introducing price convergence as an indicator of integration and controlling for the concentration of skilled labour and allowing for path dependency. Our main findings are in line with the expectations of the New Economic Geography School in that integration does contribute to the growing regional inequality in the EU. Price convergence is a significant explanatory variable even after the introduction of a time lag in the dependent variable.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 10-19.
Length: 29 pages
Date of creation: 2010
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-EEC-2011-02-12 (European Economics)
- NEP-EUR-2011-02-12 (Microeconomic European Issues)
- NEP-GEO-2011-02-12 (Economic Geography)
- NEP-PBE-2011-02-12 (Public Economics)
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.:
- Andrés Rodríguez-Pose & Ugo Fratesi, 2003.
"Between development and social policies: the impact of European Structural Funds in Objective 1 Regions,"
European Economy Group Working Papers
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- Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 321-359, October.
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