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Regional income inequality and convergence processes in the EU-25

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  • Paas, Tiiu
  • Schlitte, Friso

Abstract

This paper deals with the development of disparities in regional per capita GDP and convergence processes in the enlarged EU. A cross-section of 861 regions is analysed for the period from 1995 to 2003. Firstly, we apply Theil's index of inequality in order to show the development of between- and within-country disparities. Secondly, we conduct a formal Ø-convergence analysis, taking into account the effects of spatial dependence and controlling for national effects. The analyses show that poorer regions mainly situated in the European periphery have tended to grow faster than the relatively rich regions in the centre of Europe. However, the convergence process has been driven mainly by national factors. In the course of this process, regional disparities within the new member countries have actually increased. Furthermore, we find that spatial growth spillovers lose relevance when crossing a national border. Thus, border impediments still matter for the intensity of economic cross-border integration in the EU. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 1-11.

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Date of creation: 2007
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Handle: RePEc:zbw:hwwirp:1-11

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Keywords: regional inequality; convergence; EU-25; regional interactions; spatial econometrics;

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References

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Citations

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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. Augusto Cusinato & Fabiano Compagnucci, 2011. "Industrial Districts and the City: Relationships in the Knowledge Age. Evidence from the Italian Case," ERSA conference papers ersa11p237, European Regional Science Association.
  5. Juliana Dahl, 2013. "Innovation and Growth in Regions with Specific Geographical Features," Kiel Advanced Studies Working Papers 463, Kiel Institute for the World Economy.
  6. 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.
  7. 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.
  8. 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".
  9. 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).
  10. 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].
  11. Johanna Vogel, 2012. "Agglomeration and Growth: Evidence from the Regions of Central and Eastern Europe," ERSA conference papers ersa12p1089, European Regional Science Association.
  12. Tiiu Paas, 2012. "Regional Disparities And Innovations In Europe," ERSA conference papers ersa12p80, European Regional Science Association.
  13. Niebuhr, Annekatrin & Schlitte, Friso, 2008. "EU enlargement and convergence: Does market access matter?," HWWI Research Papers 1-16, Hamburg Institute of International Economics (HWWI).
  14. 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.
  15. 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.

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