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The European Regional Growth Process Revisited

Author

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  • Sandy Dall'Erba
  • Marco Percoco
  • Gianfranco Piras

Abstract

Abstract With the 2004 enlargement to the East, the EU regional growth process can no longer be seen in the frame of the traditional core–periphery pattern. This is why this article proposes an innovative methodology to endogenously detect convergence clubs while accounting for spatial autocorrelation across regions. Our model is estimated on 244 EU25 regions over 1991–2003. Our results indicate that four distinctive clubs are present in our sample. In addition, the model we use does not rely on the traditional neoclassical model but on Verdoorn's law, which allows us to account for the presence of increasing returns to scale. Our conclusions give new insights for policy makers interested in convergence and regional policies developed to promote it.

Suggested Citation

  • Sandy Dall'Erba & Marco Percoco & Gianfranco Piras, 2008. "The European Regional Growth Process Revisited," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(1), pages 7-25.
  • Handle: RePEc:taf:specan:v:3:y:2008:i:1:p:7-25
    DOI: 10.1080/17421770701733399
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    Citations

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    Cited by:

    1. Tausch, Arno, 2008. "308 Billion Euros into the Sand? The Debacle of the EU's Regional Policy [308 Milliarden Euro in den Sand? Zum Debakel der EU-Regionalpolitik]," MPRA Paper 10609, University Library of Munich, Germany.
    2. Up Lim, 2016. "Regional income club convergence in US BEA economic areas: a spatial switching regression approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 273-294, January.
    3. Luca Salvati & Marco Zitti & Margherita Carlucci, 2014. "Territorial Systems, Regional Disparities and Sustainability: Economic Structure and Soil Degradation in Italy," Sustainability, MDPI, Open Access Journal, vol. 6(5), pages 1-19, May.
    4. Fernando López & Jesús Mur & Ana Angulo, 2014. "Spatial model selection strategies in a SUR framework. The case of regional productivity in EU," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 197-220, August.
    5. Up Lim & Donghyun Kim, 2015. "Toward Sustainable Economic Growth: A Spatial Panel Data Analysis of Regional Income Convergence in US BEA Economic Areas," Sustainability, MDPI, Open Access Journal, vol. 7(8), pages 1-17, July.
    6. Gianfranco Piras & Paolo Postiglione & Patricio Aroca, 2012. "Specialization, R&D and productivity growth: evidence from EU regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 35-51, August.
    7. Josef Novotný, 2010. "Regionální ekonomická konvergence, divergence a další aspekty distribuční dynamiky evropských regionů v období 1992-2006
      [Regional Convergence, Divergence and Other Aspects of Distributional Dynami
      ," Politická ekonomie, University of Economics, Prague, vol. 2010(2), pages 166-185.
    8. Tani, Massimiliano & Manuguerra, Maurizio, 2013. "The Effect of Migration and Spatial Connectivity on Regional Skill Endowments across Europe: 1988-2010," IZA Discussion Papers 7292, Institute for the Study of Labor (IZA).
    9. Sheila Chapman & Stefania Cosci & Loredana Mirra, 2012. "Income dynamics in an enlarged Europe: the role of capital regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 663-693, June.
    10. Dimitris Kallioras & Panagiotis Artelaris & Lefteris Topaloglou & Maria Tsiapa, 2011. "Detecting the Growth Pattern(s) of the EU Border Regions: A Convergence Clubs Approach," ERSA conference papers ersa11p76, European Regional Science Association.
    11. Tausch, Arno, 2009. "Ist die Globalisierung fit für das soziale Europa?
      [Is Globalization fit for Social Europe?]
      ," MPRA Paper 14264, University Library of Munich, Germany.
    12. Arno Tausch, 2009. "Das EU-Budget und der Lissabon-Prozess," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 107, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.

    More about this item

    Keywords

    Regional convergence; European enlargement; regional growth; spatial econometric models; C21; C23; R11; R12;

    JEL classification:

    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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