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Economic Growth and Convergence of EU Member States: An Empirical Investigation

  • M-super-a Jes�s Delgado-Rodríguez
  • Inmaculada �lvarez-Ayuso

The aim of this article is to construct a European production frontier using deterministic methods, and to break down growth and convergence during the period 1980-2001. The results show that EU growth is primarily driven by physical and human capital accumulation, the contribution of which is essential for the cohesion of European countries. We find capital accumulation and efficiency change to be important convergence factors within the EU, while technical change has worked against it. The approach used has also enabled us to analyze the differences in growth performance of Member States and highlight the role of human and public capital, supporting the European cohesion and development policies carried out in this period. Copyright � 2008 The Authors. Journal compilation � 2008 Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 12 (2008)
Issue (Month): 3 (08)
Pages: 486-497

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Handle: RePEc:bla:rdevec:v:12:y:2008:i:3:p:486-497
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