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Testing convergence of European regions: A semiparametric approach

  • Azomahou, Théophile T.
  • El ouardighi, Jalal
  • Nguyen-Van, Phu
  • Pham, Thi Kim Cuong

We provide a reappraisal of income convergence across European regions over the last two decades by using a semiparametric partially linear model to approximate the relationship between the average growth rate of GDP per capita and the initial GDP per capita. Estimation results point out both country heterogeneity and non-linearity in the convergence process. The findings suggest that low income regions, in particular those from new adhesion countries, diverge while medium income regions converge and that there is no evidence of convergence for high income regions.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 28 (2011)
Issue (Month): 3 (May)
Pages: 1202-1210

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Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:1202-1210
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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