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Regional convergence within particular country — An approach based on the regional price deflators

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  • Rokicki, Bartlomiej
  • Hewings, Geoffrey J.D.

Abstract

This paper applies regional price deflators for Polish NUTS2 regions and US states in order to reassess regional income convergence within particular country. We find that the regional income disparities decrease significantly once we account for regional price differentials. Moreover, we prove that the application of regional price deflators has significant impact on the results of both σ and β-convergence analysis. They also influence the conclusions concerning the magnitude of spatial spillovers. The above results can have important policy implications, in particular concerning the EU Cohesion Policy financial allocations and the assessment of policy effectiveness.

Suggested Citation

  • Rokicki, Bartlomiej & Hewings, Geoffrey J.D., 2016. "Regional convergence within particular country — An approach based on the regional price deflators," Economic Modelling, Elsevier, vol. 57(C), pages 171-179.
    • Handle: RePEc:eee:ecmode:v:57:y:2016:i:c:p:171-179
    DOI: 10.1016/j.econmod.2016.04.019
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    Cited by:

    1. Smirnykh, Larisa & Woergoetter, Andreas, 2021. "Regional convergence in CEE before and after the Global Financial Crisis," IHS Working Paper Series 33, Institute for Advanced Studies.
    2. Coro Chasco & Patricio Aroca, 2017. "Introduction: In honor of Geoffrey Hewings," Journal of Geographical Systems, Springer, vol. 19(4), pages 297-300, October.
    3. Panagiotis Artelaris, 2021. "Regional economic growth and inequality in Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 141-158, February.
    4. Petr Janský & Dominika Kolcunová, 2017. "Regional differences in price levels across the European Union and their implications for its regional policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 641-660, May.
    5. Cartone, Alfredo & Postiglione, Paolo & Hewings, Geoffrey J.D., 2021. "Does economic convergence hold? A spatial quantile analysis on European regions," Economic Modelling, Elsevier, vol. 95(C), pages 408-417.

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    More about this item

    Keywords

    Regional convergence; Regional price deflators; Cohesion policy;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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