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A Divided Europe? Regional Convergence and Neighbourhood Spillover Effects

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  • Anca Carrington

Abstract

While the stylised fact that, around the world, areas of rapid growth are geographically distinct from those with a poor growth performance, is easily accepted, little effort has been made in the empirical literature to incorporate location into the analysis of regional convergence in terms of economic growth. This paper provides a quantitative evaluation of the role of location in regional convergence, using the argument that growth in each region depends not only on its own characteristics but also on those of the regions that form the neighbourhood to which it belongs. Applying spatial econometrics it is found that, during the 1990s, opposing forces were exerting their influence across the EU: while regions did converge at a rate close to the 2 percent mark, neighbourhoods of regions diverged at an almost equal rate, leaving a net effect of convergence considerably smaller than the one previously reported in the literature. Copyright WWZ and Helbing & Lichtenhahn Verlag AG 2003.

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  • Anca Carrington, 2003. "A Divided Europe? Regional Convergence and Neighbourhood Spillover Effects," Kyklos, Wiley Blackwell, vol. 56(3), pages 381-393, August.
  • Handle: RePEc:bla:kyklos:v:56:y:2003:i:3:p:381-393
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    References listed on IDEAS

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    1. Sinn, Hans-Werner & Feist, Holger, 1997. "Eurowinners and Eurolosers: The distribution of seigniorage wealth in EMU1," European Journal of Political Economy, Elsevier, vol. 13(4), pages 665-689, December.
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    3. Hans-Werner Sinn & Holger Feist, 2000. "Seignorage Wealth in the Eurosystem: Eurowinners and Eurolosers Revisited," CESifo Working Paper Series 353, CESifo Group Munich.
    4. Hans-Werner Sinn & Holger Feist, 1997. "Eurowinners and Eurolosers: The Distribution of Seignorage Wealth in EMU," CESifo Working Paper Series 134, CESifo Group Munich.
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    Cited by:

    1. Fredrik Wilhelmsson, 2009. "Effects of the EU-Enlargement on Income Convergence in the Eastern Border Regions," CASE Network Studies and Analyses 0383, CASE-Center for Social and Economic Research.
    2. Pfaffermayr, Michael, 2009. "Conditional [beta]- and [sigma]-convergence in space: A maximum likelihood approach," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 63-78, January.
    3. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β-Convergence Differ? A Meta-Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    4. 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.
    5. Martin-Barroso, David & Nuñez Serrano, Juan Andres & Velazquez, Francisco J., 2010. "Spatial productivity spillovers across Spanish municipalities," MPRA Paper 33603, University Library of Munich, Germany, revised 2010.
    6. repec:spr:cejnor:v:25:y:2017:i:3:d:10.1007_s10100-016-0447-6 is not listed on IDEAS
    7. Eckey, Hans-Friedrich & Türck, Matthias, 2005. "Convergence of EU-regions: A literature report," Volkswirtschaftliche Diskussionsbeiträge 80, University of Kassel, Faculty of Economics and Management.
    8. Cucos Paula – Roxana, 2016. "Evaluation Of Economic Convergence In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 178-183, October.
    9. Eckey, Hans-Friedrich & Döring, Thomas & Türck, Matthias, 2006. "Convergence of regions from 23 EU member states," Volkswirtschaftliche Diskussionsbeiträge 86, University of Kassel, Faculty of Economics and Management.
    10. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    11. repec:elg:eechap:14395_11 is not listed on IDEAS
    12. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
    13. Ari Kokko & Victoria Kravtsova, 2012. "Regional Characteristics And Effects Of Inward Fdi: The Case Of Ukraine," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 3(2).

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