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Drivers of convergence: The role of first- and second-nature geography

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  • Theodoros Arvanitopoulos

    (University College London, UK
    University of East Anglia, UK)

  • Vassilis Monastiriotis

    (London School of Economics, UK)

  • Theodore Panagiotidis

    (University of Macedonia, Greece)

Abstract

The analysis of regional convergence often stays at the level of documentation, with limited attention placed on the drivers of convergence/divergence dynamics. This article offers a systematic analysis of this, examining the role of first-nature (location, proximity, physical geography) and second-nature geography (economic structure, agglomeration, economic potential) in accounting for regional synchronicity in growth trajectories (stochastic convergence). Utilising historical data for Greece at the prefectural level and up-to-date time-series econometric techniques, we test for the presence of stochastic convergence in the country over three decades prior to the crisis; identify the pairs of regions which exhibit co-movement in their growth dynamics; and examine the covariates of this. Our results unveil a picture of limited-only and cluster-like convergence, driven predominantly by factors related to accessibility, sectoral specialisations, labour market dynamism, market potential and selected locational characteristics. This supports two propositions: (a) convergence is an endogenous process, related to shared and incongruent characteristics of regions; and, by implication, (b) regional disparities are structural (in the sense that they are linked to economic and spatial structure) and thus require targeted policies in order to be addressed.

Suggested Citation

  • Theodoros Arvanitopoulos & Vassilis Monastiriotis & Theodore Panagiotidis, 2021. "Drivers of convergence: The role of first- and second-nature geography," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2880-2900, November.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:14:p:2880-2900
    DOI: 10.1177/0042098020981361
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    2. Monastiriotis, Vassilis & Martelli, Angelo, 2021. "Crisis, adjustment and resilience in the Greek labor market: an unemployment decomposition approach," LSE Research Online Documents on Economics 107048, London School of Economics and Political Science, LSE Library.

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