Advanced Search
MyIDEAS: Login to save this paper or follow this series

Regional Income Inequality and Convergence Processes in the EU-25

Contents:

Author Info

  • Tiiu Paas

    ()

  • Friso Schlitte

    ()

Abstract

The paper investigates income inequality and convergence among the EU-25 countries and their regions at NUTS 3 (Nomenclature of Territorial Units for Statistics) level during the period 1995-2002. We measure the level of income inequality and its decomposition distinguishing the between and within country inequality as the components of the overall income inequality of EU-25, EU-15 and the new member states (NMS) of the EU recent enlargement in May 2004. In order to assess the inequality in living standards GDP in purchasing power standards (PPS) is used. In the empirical analysis of the convergence processes we consider the effects of interactions among neighbouring regions implementing spatial econometrics techniques. The estimation results are sensitive to the control for national effects. While the EU-25 and the EU-15 experienced a slow but significant process of absolute convergence there is no evidence found for regional convergence when national effects are considered. In the NMS the process of conditional convergence across regions even turns out to be significantly negative. This indicates that there were some divergence tendencies in the NMS during the period of 1995 – 2002.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa06/papers/229.pdf
Download Restriction: no

Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p229.

as in new window
Length:
Date of creation: Aug 2006
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa06p229

Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
  2. Bräuninger, Michael & Niebuhr, Annekatrin, 2005. "Agglomeration, Spatial Interaction and Convergence in the EU," HWWA Discussion Papers 322, Hamburg Institute of International Economics (HWWA).
  3. Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
  4. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, 06.
  5. Robert J. Barro, 2012. "Inflation and Economic Growth," CEMA Working Papers 568, China Economics and Management Academy, Central University of Finance and Economics.
  6. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  7. Peter Egger & Michael Pfaffermayr, 2006. "Spatial convergence," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 199-215, 06.
  8. Valentina Meliciani & Franco Peracchi, 2006. "Convergence in per-capita GDP across European regions: a reappraisal," Empirical Economics, Springer, vol. 31(3), pages 549-568, September.
  9. Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," Economics Series Working Papers WPS/1995-11, University of Oxford, Department of Economics.
  10. Xavier Sala-i-Martin, 1995. "Transfers, social safety nets and economic growth," Economics Working Papers 139, Department of Economics and Business, Universitat Pompeu Fabra.
  11. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
  12. Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 309-362, 07.
  13. Martin, Philippe & Rogers, Carol Ann, 1995. "Stabilization Policy, Learning by Doing, and Economic Growth," CEPR Discussion Papers 1130, C.E.P.R. Discussion Papers.
  14. Annekatrin Niebuhr & Friso Schlitte, 2004. "Convergence, trade and factor mobility in the European Union — Implications for enlargement and regional policy," Intereconomics: Review of European Economic Policy, Springer, vol. 39(3), pages 167-176, May.
  15. Giuseppe Arbia & Laura De Dominicis & Gianfranco Piras, 2005. "The relationship between Regional Growth and Regional Inequality in EU and transition countries - a Spatial Econometric Approach," ERSA conference papers ersa05p168, European Regional Science Association.
  16. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  17. BAUMONT, Catherine & ERTUR, Cem & LE GALLO, Julie, 2001. "A Spatial Econometric Analysis of Geographic Spillovers and Growth for European Regions, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2001-04, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
  18. Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer, vol. 35(3), pages 333-356.
  19. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
  20. Tondl, Gabriele & Vuksic, Goran, 2003. "What makes regions in Eastern Europe catching up? The role of foreign investment, human resources and geography," ZEI Working Papers B 12-2003, ZEI - Center for European Integration Studies, University of Bonn.
  21. Giuseppe Arbia & Gianfranco Piras, 2004. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ERSA conference papers ersa04p524, European Regional Science Association.
  22. Fischer, Manfred M. & Stirböck, Claudia, 2004. "Regional Income Convergence in the Enlarged Europe, 1995-2000: A Spatial Econometric Perspective," ZEW Discussion Papers 04-42, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  23. Niebuhr, Annekatrin, 2000. "Convergence and the effects of spatial interaction," HWWA Discussion Papers 110, Hamburg Institute of International Economics (HWWA).
  24. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73.
  25. Juan Antonio Duro, 2003. "Factor decomposition of spatial income inequality: a revision," Working Papers wpdea0302, Department of Applied Economics at Universitat Autonoma of Barcelona.
  26. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Christ, Julian P., 2010. "Geographic concentration and spatial inequality: Two decades of EPO patenting at the level of European micro regions," Violette Reihe Arbeitspapiere 32/2010, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  2. George Petrakos & Panagiotis Artelaris, 2009. "European Regional Convergence Revisited: A Weighted Least Squares Approach," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 40(2), pages 314-331.
  3. Justyna Supińska, 2013. "Does human factor matter for economic growth? Determinants of economic growth process in CEE countries in light of spatial theory," Bank i Kredyt, National Bank of Poland, Economic Institute, vol. 44(5), pages 505-532.
  4. Niebuhr, Annekatrin & Schlitte, Friso, 2008. "EU enlargement and convergence: Does market access matter?," HWWI Research Papers 1-16, Hamburg Institute of International Economics (HWWI).
  5. Johanna Vogel, 2012. "Agglomeration and Growth: Evidence from the Regions of Central and Eastern Europe," ERSA conference papers ersa12p1089, European Regional Science Association.
  6. Joanna Tyrowicz & Piotr Wojcik, 2010. "Active Labour Market Policies and Unemployment Convergence in Transition," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 2(1), pages 46-72, January.
  7. Schwengler, Barbara, 2013. "Einfluss der europäischen Regionalpolitik auf die deutsche Regionalförderung," IAB Discussion Paper 201318, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  8. Boll, Christina, 2010. "Mind the gap!: The amount of German mothers' care bill and its game theoretical issues," HWWI Research Papers 1-29, Hamburg Institute of International Economics (HWWI).
  9. Fabiano COMPAGNUCCI & Augusto CUSINATO, 2011. "Industrial Districts and the City: Relationships in the Knowledge Age. Evidence from the Italian Case," Working Papers 365, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  10. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
  11. Juliana Dahl, 2013. "Innovation and Growth in Regions with Specific Geographical Features," Kiel Advanced Studies Working Papers 463, Kiel Institute for the World Economy.
  12. Tiiu Paas, 2012. "Regional Disparities And Innovations In Europe," ERSA conference papers ersa12p80, European Regional Science Association.
  13. Egle Tafenau & Tiiu Paas, 2011. "Regional inequality and economic growth: interactions of the relationship with the level of economic development and speed of growth," ERSA conference papers ersa10p938, European Regional Science Association.
  14. Fürst, Dietrich & Hirschfeld, Markus & Jung, Hans-Ulrich & Lammers, Konrad & Nischwitz, Guido & Salow, Sven-Olaf & Sempell, Guido & Skubowius, Alexander, 2012. "Ausgestaltung der EU-Strukturpolitik der Förderperiode 2007 - 2013 in den nordwestdeutschen Bundesländern," Arbeitsmaterial der ARL, Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften, volume 127, number 358, November.
  15. Davor Mikulic & Ivan Kovac, 2012. "The Role Of International Trade In Convergence Process," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(4), pages 7-26.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p229. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.