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

Author

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  • 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
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume18/EB-08R00001A.pdf
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Damien Neven & Claudine Gouyette & Jean Pisani-Ferry, 1994. "European Integration and Regional Growth," Revue Économique, Programme National Persée, vol. 45(3), pages 703-713.
    4. 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.
    5. 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.
    6. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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, University of Economics, Prague, vol. 2010(2), pages 166-185.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. repec:sos:sosjrn:180111 is not listed on IDEAS
    7. Soundararajan, Pushparaj, 2013. "Regional income convergence in India: A Bayesian Spatial Durbin Model approach," MPRA Paper 44744, University Library of Munich, Germany.
    8. repec:gam:jecomi:v:5:y:2017:i:3:p:27-:d:105700 is not listed on IDEAS
    9. 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.
    10. 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).

    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

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