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More similar and less equal: Economic growth in the European regions

  • Raffaele Paci

This paper examines the growth process of 109 European regions using a new data base. Applying various statistical tools, it studies the evolution of two variables - per capita income and labour productivity. The convergence process is also analysed at the sectoral level. The main results are the following. There has been a clear process of aggregate productivity convergence across the European regions over the 1980s. At the sectoral level, the picture is far more intricate - there has not been convergence in agriculture, while the industrial and services sectors show ?-convergence accompanied by a constant degree of dispersion in the distribution. Most crucially the regional dispersion in per capita income has remained almost constant, so that the differences in wealth conditions of the European citizens are still extremely high. This last result suggests the need for more effective regional policies by the European Union and the national governments

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Article provided by Springer in its journal Weltwirtschaftliches Archiv.

Volume (Year): 133 (1997)
Issue (Month): 4 (December)
Pages: 609-634

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Handle: RePEc:spr:weltar:v:133:y:1997:i:4:p:609-634
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  1. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
  3. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
  4. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  5. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-69, July.
  6. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  7. Gouyette, Claudine & Neven, Damien J, 1994. "Regional Convergence in the European Community," CEPR Discussion Papers 914, C.E.P.R. Discussion Papers.
  8. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  9. Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers 0159, National Bureau of Economic Research, Inc.
  10. Dignan, Tony, 1995. "Regional Disparities and Regional Policy in the European Union," Oxford Review of Economic Policy, Oxford University Press, vol. 11(2), pages 64-95, Summer.
  11. 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, 09.
  12. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
  13. Stephen L. Parente & Edward C. Prescott, 1993. "Changes in the wealth of nations," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 3-16.
  14. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
  15. Holger Wolf, 1994. "Growth convergence reconsidered," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(4), pages 747-759, December.
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