IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-08r00001.html
   My bibliography  Save this article

Regional Convergence in the European Union: Results from a Panel Data Model

Author

Listed:
  • Jesus Lopez-Rodriguez

    (Harvard University and University of A Coruña)

Abstract

This paper evaluates the convergence process for different samples of European Union regions during the period 1982-1999 by using fixed effects panel data regressions. This estimation method allows us to control for unobserved time-invariant heterogeneity in cross-sectional models. The results of growth rates are significantly negatively related to income levels and show that the convergence relationship holds. However when regions are bound to very different steady state positions, convergence to a common income level appears to be impossible.

Suggested Citation

  • Jesus Lopez-Rodriguez, 2008. "Regional Convergence in the European Union: Results from a Panel Data Model," Economics Bulletin, AccessEcon, vol. 18(2), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08r00001
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2008/Volume18/EB-08R00001A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    2. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    3. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 664-671, October.
    4. Fabio Canova & Albert Marcet, 1995. "The poor stay poor: Non-convergence across countries and regions," Economics Working Papers 137, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
    5. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    6. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, September.
    7. Damien Neven & Claudine Gouyette & Jean Pisani-Ferry, 1994. "European Integration and Regional Growth," Revue Économique, Programme National Persée, vol. 45(3), pages 703-713.
    8. Giannetti, Mariassunta, 2002. "The effects of integration on regional disparities: Convergence, divergence or both?," European Economic Review, Elsevier, vol. 46(3), pages 539-567, March.
    9. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
    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


    Cited by:

    1. Takahiro Akita & Armida Salsiah Alisjahbana, 2023. "The Initial Impacts of the COVID-19 Pandemic on Regional Economies and Income Inequality in Indonesia: A Bi-dimensional Inequality Decomposition Analysis," Working Papers EMS_2023_02, Research Institute, International University of Japan.
    2. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, vol. 29(1), pages 60-71.
    3. Josef Novotný, 2010. "Regionální ekonomická konvergence, divergence a další aspekty distribuční dynamiky evropských regionů v období 1992-2006 [Regional Convergence, Divergence and Other Aspects of Distributional Dynami," Politická ekonomie, Prague University of Economics and Business, vol. 2010(2), pages 166-185.
    4. Ioan Ianos & Irina Saghin & Gabriel Pascariu, 2013. "Regions and the Territorial Cohesion," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 415-429, August.
    5. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
    6. Guryanova Lidiya S. & Kholodnyi Gennadyi O. & Lukyanchikova Anna S., 2013. "Methods and models of analysis of spatial clusterisation of rates of socio-economic development of regions," The Problems of Economy, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), issue 2, pages 242-250.
    7. Konrad Lyncker & Rasmus Thoennessen, 2017. "Regional club convergence in the EU: evidence from a panel data analysis," Empirical Economics, Springer, vol. 52(2), pages 525-553, March.
    8. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    9. Orhan KARACA, 2018. "Türkiye’de Bölgesel Yakınsamanın 50 Yılı: Yeni Veri Seti ve 1960-2010 Dönemi Analizi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(35).
    10. Soundararajan, Pushparaj, 2013. "Regional income convergence in India: A Bayesian Spatial Durbin Model approach," MPRA Paper 44744, University Library of Munich, Germany.
    11. Nitin Aroa, 2013. "Testing of Technical Efficiency Catching-up in Indian Sugar Industry: A Longitudinal Analysis of Sugar Producing States," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ebl:ecbull:v:18:y:2008:i:2:p:1-7 is not listed on IDEAS
    2. ?gel de la Fuente, "undated". "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    4. Angel de la Fuente, "undated". "What kind of regional convergence?," Studies on the Spanish Economy 07, FEDEA.
    5. Stavros Rodokanakis, 2006. "“How Effective are the Regional Policies of Convergence in the EU?”," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 59-74.
    6. Jesus Lopez-Rodriguez & Andres Faiña, 2009. "Regional Policy and Convergence in Europe: The Case of Backward Regions," Economics Bulletin, AccessEcon, vol. 29(2), pages 1046-1053.
    7. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    8. Eckey, Hans-Friedrich & Türck, Matthias, 2005. "Convergence of EU-regions: A literature report," Volkswirtschaftliche Diskussionsbeiträge 80, University of Kassel, Faculty of Economics and Management.
    9. 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.
    10. Harvey W. Armstrong, 1996. "European Union Regional Policy: Sleepwalking to a Crisis," International Regional Science Review, , vol. 19(3), pages 193-209, July.
    11. Harald Badinger & Werner Muller & Gabriele Tondl, 2004. "Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 241-253.
    12. Valentina Meliciani & Franco Peracchi, 2009. "Convergence in per-capita GDP across European regions: a reappraisal," Studies in Empirical Economics, in: Giuseppe Arbia & Badi H. Baltagi (ed.), Spatial Econometrics, pages 203-222, Springer.
    13. Maurseth, Per Botolf, 2001. "Convergence, geography and technology," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 247-276, September.
    14. 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.
    15. Funke, Michael & Strulik, Holger, 1999. "Regional growth in West Germany: convergence or divergence?," Economic Modelling, Elsevier, vol. 16(4), pages 489-502, December.
    16. Mustafa Gömleksiz & Ahmet Şahbaz & Birol Mercan, 2017. "Regional Economic Convergence in Turkey: Does the Government Really Matter for?," Economies, MDPI, vol. 5(3), pages 1-16, July.
    17. Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.
    18. Marelli, Enrico, 1999. "Convergence and asymmetries in the employment dynamics of the European regions," ERSA conference papers ersa99pa120, European Regional Science Association.
    19. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    20. Leone Leonida, 2023. "What Have We Not Learned from the Convergence Debate?," Mathematics, MDPI, vol. 11(9), pages 1-22, April.
    21. Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.

    More about this item

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08r00001. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.