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Regional Income Inequality and Convergence Processes in the EU-25

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  • Friso Schlitte
  • Tiiu Paas

Abstract

Regional Income Inequality and Convergence Processes in the EU-25 This paper deals with the development of disparities in regional per capita GDP and convergence processes in the enlarged EU. A cross-section of 861 regions is analysed for the period from 1995 to 2003. The analyses show that poorer regions mainly situated in the European periphery have tended to grow faster than the relatively rich regions in the centre of Europe. However, the convergence process has been driven mainly by national factors. In the course of this process, regional disparities within the new member countries have actually increased. Furthermore, we find that spatial growth spillovers lose relevance when crossing a national border. Thus, border impediments still matter for the intensity of economic cross-border integration in the EU. Keywords: regional inequality, convergence, EU-25, regional interactions, spatial econometrics. JEL classification codes: R11, O11, C21

Suggested Citation

  • Friso Schlitte & Tiiu Paas, 2008. "Regional Income Inequality and Convergence Processes in the EU-25," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(Suppl. 2), pages 29-49.
    • Handle: RePEc:fan:scresc:v:html10.3280/scre2008-sup003
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    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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