Regional income inequality and convergence processes in the EU-25
AbstractThis 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 InfoPaper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 1-11.
Date of creation: 2007
Date of revision:
regional inequality; convergence; EU-25; regional interactions; spatial econometrics;
Other versions of this item:
- Tiiu Paas & Friso Schlitte, 2006. "Regional Income Inequality and Convergence Processes in the EU-25," ERSA conference papers ersa06p229, European Regional Science Association.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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